Annual Report Annual Report - NZX

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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
Liehberr LHM 400 mobile crane loading container onto an MSC vessel ‘‘ The global container shipping market has sustained significant losses and this has necessitated both schedule and tariff rate realignment...” Cargo Activity Unlike the previous period when all cargo categories were either steady or improved, the 2012 year delivered a mix of volume gains and losses across a range of sectors. Fortunately, overall gains outweighed losses and in the past 12 months a fresh annual volume record of 2.69 million tonnes was established (2011 – 2.64 million tonnes). Products recording substantial volume increases included petroleum, stock food, sawn timber and wood chips. Trades registering noticeable declines were logs and NZAS import products. Containerised cargo activity was stable with total TEU (twenty foot container unit measure) volume reflecting 32,500 (2011 – 33,000). Containers (Vanned / Devanned) Crane Productivity (moves per hour) Ship Calls 1,200 12.5 4,900 4,900 5,700 15.6 15.0 15.4 17.81 246 252 284 6,900 336 328 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 5
Page 1 and 2: Annual Report 2O12
Page 3 and 4: South Port Facts • Owns and manag
Page 5: Financial Results in Brief $m 6.0 5
Page 9 and 10: further dry warehousing the Island
Page 11 and 12: Safety South Port’s on-going comm
Page 13 and 14: outflows of wood chip product and h
Page 15 and 16: Directors , from left: Jeremy McCle
Page 17 and 18: Disclosure of interest Pursuant to
Page 19 and 20: Corporate Governance The Board of S
Page 21 and 22: Health & Safety and Environment Hea
Page 23 and 24: Weekly Container Line Servicing Blu
Page 25 and 26: ‘‘ The Port’s new Liebherr LH
Page 27 and 28: ‘‘ I have worked on the Port fo
Page 29 and 30: 2 25 4 15 17 14 13 5 3 19 20 12 16
Page 31 and 32: Statement of Comprehensive Income O
Page 33 and 34: Statement of Cash Flows OF SOUTH PO
Page 35 and 36: at amortised cost using the effecti
Page 37 and 38: 5 OPERATING REVENUE Group Company I
Page 39 and 40: 11 INCOME TAXES Group Company In Th
Page 41 and 42: Note 11 continued... COMPANY In Tho
Page 43 and 44: 16 CAPITAL AND RESERVES Reconciliat
Page 45 and 46: Note 20 continued... (iii) Long ser
Page 47 and 48: Note 24 continued... Weighted CCAF
Page 49 and 50: Note 24 continued... The following
Page 51 and 52: 29 INVESTMENT IN SUBSIDIARY COMPANY
Page 53 and 54: Glossary of Port and Shipping Terms
Page 55 and 56: Southern Region Production Location

Annual Report Annual Report - NZX

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