Annual Report Annual Report - NZX

Review of
Operations
Overview
During a period in which several significant world markets
continued to come under economic pressure, South Port
was pleased to post another strong trading result. Aided by a
primary-produce sector that has demonstrated durability, total
cargo volume passing through the Port represented a record
level for the second consecutive year.
It should be acknowledged that a number of customers
encountered challenging operating conditions in the past
season and this created either slow moving inventory or
reduced margins for these businesses.
The reported after tax profit of $5.99 million (2011 – $6.26
million) included a one-off tax-paid adjustment of $270,000
as the sale proceeds from the sale of a surplus mobile harbour
crane exceeded the book value. Reversing this adjustment
results in a 2012 normalised profit of $5.72 million compared
with $5.98 million in the prior year.
Normalised Profit Table
reflecting $ millions 2012 2011
Net Surplus After Income Tax 5.99 6.26
One-off Gain on Asset Sale / Deferred
Tax Adjustment (0.27) (0.28)
Restated Profit $5.72 $5.98
Mark O’Connor and Rex Chapman
with black pottery vase presented to South Port
by Lanshan Harbour Co., China on signing of
Agreement on Technical Co-operation
The above result can be considered extremely creditable when
shareholders take into account the fact that the Company
had to absorb much higher operating costs in the reported
period. The cost of establishing appropriate resources to
handle a sustained lift in base cargo, the effect of increased
depreciation on large scale plant (mobile harbour crane and
top lifter forklifts) and significantly higher insurance charges
reflected in the bottom line result. Shareholders will be aware
that South Port achieved a 25% lift in cargo volume during
2011 (compared to the average annual tonnage level of the
three previous financial years) and this on-going activity gain
can only be supported with additional personnel, plant and
infrastructure.
Number of Containers
(TEU Equivalents)
Breakdown of Cargo
(Bulk/Break-bulk/Containers tonnage)
bulk break-bulk containers
10,700
124,000
23,800
28,900
32,700
32,400
1,779,000
1,428,000
1,673,000
2,034,000
2,086,000
346,000
203,000
245,000
261,000
264,000
232,000
250,000
340,000
342,000
2008 2009 2010 2011 2012
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
4