South Port New Zealand (SPN) H2 2024 earnings summary

Executive summary

• Net profit after tax fell 37% to $7.38m for FY2024, impacted by subdued trading and a one-off $2.3m deferred tax expense due to legislative changes.

• Operating revenue rose 4.7% to $56.13m, while EBITDA declined 6.4% to $21.31m year-over-year.

• Container volumes surged 24.5% to 51,900 TEU, offsetting a 12.2% drop in bulk cargo volumes.

• A 20-year electricity agreement with NZAS secures a third of cargo volume and underpins regional investment.

• Full year dividend maintained at 27.0c per share, representing a 96% payout of reported NPAT.

Financial highlights

• Net profit after tax: $7.38m (down from $11.71m); normalised NPAT: $9.96m (down 13.4%).

• Operating revenue: $56.13m (up from $53.59m); EBITDA: $21.31m (down from $22.77m).

• Earnings per share: 28.1c (down from 44.6c); dividends declared per share: 27.0c (unchanged).

• Return on equity: 12.3% (down from 20.3%); shareholders' equity ratio: 58.3%.

• Operating cash flow: $12.79m (down from $16.45m); net asset backing per share: $2.30.

Outlook and guidance

• FY2025 earnings forecasted at $9.3m–$10.3m, supported by the NZAS contract and project cargo from wind farm developments.

• Directors intend to at least maintain the current dividend level, barring unforeseen circumstances.

• Bulk cargoes, especially agriculture and forestry, expected to remain challenging due to global market conditions.