Shipping service cut shows in South Port profit drop

The strong dollar, as well as the loss of a key shipping service, saw South Port's profit for the December half-year drop compared with the previous year.

The company reported a net profit of $1.1 million for the half-year ended December, down from $1.3 million for the same period the year earlier.

Operating revenue for the period was $6.5 million, down from $7.7 million.

Earnings per share fell to 4.16c, from 4.99c per share (cps). A fully imputed interim dividend of 2.25c a share was declared, down from 2.75c in 2004.

Chairman John Harrington said 2005 was shaping up to be a challenging trading period for the company.

South Port is forecasting a full year net profit of $1.64 million, down 20 per cent or $400,000, on the $2.04 million posted in the 2004 financial year.

In January last year, the transtasman Butterfly Service halted its weekly stop at Bluff, which pushed down containerised cargo volumes.

"The inability to date to attract a replacement transtasman shipping service or coastal container linkage has meant that South Port's marine and cargo-handling resources have not been fully utilised," Harrington said.

The company reported cargo volumes of 1,014,000 tonnes for the six months ended December, down 10 per cent from 1,129,000 tonnes for the same period last year.

The export of logs through South Port also stopped at the start of this financial year, a move Harrington said was a direct result of high foreign exchange levels and increasing ocean freight costs.

On the upside, import tonnages of fertiliser and petroleum products were firm, while export volumes of sawn timber, medium density fibreboard, pebbles and general cargo were on the rise.

- NZPA