South Port Achieves Record Profits and Prepares for Leadership Change

South Port achieved remarkable results for the fiscal year ending June 30, 2024, reporting significant growth in profits and revenue. In a recent announcement to the New Zealand Exchange (NZX), Chairman Philip Cory-Wright highlighted a record normalised profit after tax (NPAT) of $13.9 million, reflecting a substantial increase of 40% compared to the previous year. The reported NPAT also showed impressive growth, rising 81% to $13.3 million.

Revenue for the company rose by 13% to $63.3 million, largely driven by a robust recovery in bulk cargo and the ongoing diversification of trade. This positive performance led the company to declare a full-year dividend of 28 cents per share, an increase from 27 cents in the fiscal year 2024. The dividend reflects the company’s confidence in the sustainability of its earnings and cash flows.

Operational Highlights and Future Outlook

Operationally, South Port recorded an 11% increase in total cargo throughput, reaching 3.55 million tonnes. This increase was supported by a strong performance in bulk cargo, which grew by 12.5%, driven by demand from the agriculture and forestry sectors. Container volumes remained steady, with exports accounting for 47% and imports for 53% of total cargo.

Chief Executive Nigel Gear noted that the successful completion of the channel deepening project, achieved on time and under budget, has already provided tangible benefits to customers. The company anticipates that trade volumes will remain strong through fiscal year 2026, bolstered by continued growth in the dairy and forestry sectors, stable container volumes, and consistent operations at the New Zealand Aluminium Smelter (NZAS), which recently secured a 20-year electricity supply agreement extending to 2044.

Moreover, emerging opportunities in aquaculture, renewable energy, and data infrastructure are expected to further underpin South Port’s long-term growth prospects.

Leadership Transition Ahead

In a significant development, Nigel Gear announced he would step down from his role after eight years of leadership and over 30 years with the company. The board plans to initiate a recruitment process early next year, with Gear’s departure expected to take place in the second quarter of 2026.

The leadership transition comes at a time when South Port is poised for continued success, setting the stage for future growth and innovation as it navigates the evolving landscape of the trade industry.