South Port NZ Ltd (NZX: SPN) had a net profit after tax for the December half year of $4.9 million which exceeded expectations.
The six months result for the first half of fiscal 2018 bettered the result of $4.1 M for FY2017.
Several factors contributed to this interim result, including:
- Large volumes of inbound fertiliser were recorded.
- Dry weather had a negative impact on pasture growth which led to an increase in stock food imports for the dairy industry.
- Log exports remained strong due to buoyant market conditions.
The receipt of bulk fertiliser cargoes was “front ended” by the customer and the expectations are that these volumes will ultimately realign closer to the projected budget by year end.
Based on all known factors known when releasing the interim result, South Port estimates that its full year earnings will fall in the range of $8.65 M-$8.9 M.
For the half year there was record cargo of 1.732 M tonnes compared to 1,517 Mt in the previous interim period. This represents an increase in cargo flows of 215,000 tonnes, or 14%.
South Port said operating revenue from continuing operations was up 12% to $19.5 M.
The interim dividend of 7.5 cents per share for the half year was unchanged on the previous period.
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