New Zealand’s most southern port is focused on building resources to handle existing and future demand, its annual meeting has heard.
Yesterday, NZX-listed South Port NZ had its AGM at its head office in Bluff, which recapped the year’s events and provided shareholders with the company’s outlook for the future.
In the meeting’s notes released to the NZX following it, chairman Rex Chapman said the company’s after-tax profit for the year ended June 30, 2021, of $10.71 million, was significant on two counts. Firstly, it was a record for the port and the first time it had breached the $10million mark and secondly, the result was achieved on a much smaller percentage increase in total cargo, which was only up 5.6%. All of the port’s frontline workers were fully vaccinated before the Government’s mandate came into force last month.
The meeting touched on two sectors that could provide growth for the port.
The potential closure of the New Zealand Aluminium Smelter (NZAS) generated multiple alternative uses for the about 600MW of electricity that would then be released to the market.
The smelter’s cargo represented about 31% of South Port’s volume and contributes about $2million to its net profit after tax.
A large-scale renewable hydrogen production facility in Southland had been explored as one of the options for its replacement, should the smelter close.
The opportunity for South Port was that Southland’s renewable energy sources, both existing and potential, would allow the green fuels and products to be produced in quantities that could be exported through South Port, Mr Chapman said.
A new smolt hatchery was soon to be constructed at Ocean Beach, near Bluff.
Ngai Tahu Seafoods and Sanford had lodged a resource consent for water space off the coast of Stewart Island.
Salmon farming on the scale anticipated by those proposals would provide cargo and other marine servicing opportunities for the port, Mr Chapman said.
South Port did not expect problems with the global container supply chain to change within the next 12 months, he said.
Despite much uncertainty, the company was taking a longer view in making investment decisions.
‘‘We are continuing to invest capital in our infrastructure and in modernising our mobile plant. The entrance channel project will provide a pathway for growth for the company for many years to come, as will the other opportunities mentioned, hydrogen and aquaculture,” he said.
The company’s short-term view was its earnings were likely to remain consistent with its 2021 earnings, Mr Chapman said.
Yesterday afternoon, South Port NZ’s shares were trading at $8.940, up 0.39% on Thursday’s close.
