Record cargo volumes up more than 30% have underpinned a strong first-half trading performance for listed South Port, with its after-tax profit up 66% to $2.9 million.
The result was largely due to log exports to China and incoming cargoes of fertiliser and supplementary stock food products.
South Port chairman John Harrington said a strong increase in bulk cargo volumes drove the interim profit, for the six months to December.
Logs, fertiliser, stock food and NZ Aluminium Smelter's products all recorded increases.
The tonnage handled rose 31%, from 984,000 tonnes to 1.29 million tonnes.
"This tonnage level represents a record for the company in the first half of a financial year" ... which was "in stark contrast to a subdued domestic economy".
South Port has been watching proposed oil exploration ventures.
Chief executive Mark O'Connor said it was "disappointing but not surprising" ExxonMobil had relinquished its permit last year.
The port company was keen to assist state-owned enterprise Solid Energy, which has claim to an estimated 1.4 billion tonnes of lignite in Southland where it is to build a demonstration briquette conversion plant.
South Port's trading outlook for the second half of its trading year during 2011 "appears reasonably buoyant", based on strong commodity prices and ongoing demand for New Zealand products.
South Port's full-year earnings were forecast at $4.8 million to $5.3 million.
The first-half dividend is 5.5c from last year's 5c.
"Our financial indicators are all trending positively with net profit ahead, cash flow at solid levels and bank debt almost insignificant," he said.
The port rationalisation debate was also gaining prominence.
To achieve rationalisation, port directors and shareholders needed to consider the potential value and efficiencies which could be secured, Mr Harrington said.
