South Port New Zealand (SPN) H2 2024 earnings summary

Executive summary

• Revenue increased to $56.13M for FY24, up from $53.59M year-over-year, despite subdued trading conditions.

• After-tax profit declined to $7.38M from $11.71M year-over-year, impacted by a one-off deferred tax expense.

• Major developments include a 20-year electricity agreement with NZAS and completion of Bluff Harbour dredging.

Financial highlights

• Earnings per share were 28.1 cents, down from 44.6 cents year-over-year.

• Normalised NPAT (excluding one-offs) was $9.96M, compared to $11.50M last year.

• Net asset backing rose to $2.30 per share from $2.28 per share year-over-year.

• Final dividend declared at 19.5 cents, full year dividend at 27.0 cents per share, unchanged from last year.

• Dividend payment represents a gross return of 6.7% (net 4.8%) based on a $5.61 share price.

Outlook and guidance

• FY25 earnings estimated in the range of $9.3M to $10.3M.

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

• Ongoing challenges expected in agricultural and forestry sectors, impacting bulk cargo volumes.

• Offshore demand remains subdued and supply chain disruptions persist due to global conflicts.