I was interested to see a total of 1,434,776 SPN shares trade yesterday (representing around 5.4% of total shares on issue).
After a squiz through the Annual Report I am guessing that the seller was Tasman Pacific Insurance Ltd. Alternatively, perhaps the Southland Regional Council has been encouraged to reduce their holding in an effort to improve liquidity. I am mighty curious as to who the buyer(s) were though - obviously someone feels there is value in SPN at $1-25.
I confess to being party to one of the 5 trades yesterday (on the buy side). I thought that there should have been some price weakness after they went ex-div earlier in the week, hence the presence of my cheeky $1-15 bid. After seeing the volume trades go through yesterday I didn't want to miss the boat on this one, so I bit the bullet and increased my bid by 10cps. There is a first for everything!
Roll on next week and the SSH notice(s).
Regards JAMP
NZX: MCH MFT RBD SAN SKX SPN VTX WRI
Unlisted: BRK
SPN - South Port
Printable View
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09-10-2004, 11:09 AMJAMPSPN - South Port
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09-10-2004, 03:22 PMduncan macgregor
JAMP, If the buyers thought that there was value at $1-25 then surely the sellers thought the opposite. macdunk
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09-10-2004, 05:26 PMJAMP
I was wondering whether anyone would point this out.
As per my previous post, I am guessing (pin the tail on the donkey style) that there was only the one seller. This being the case, then there were 5 buyers (including me) who pick that at this price level SPN have something to offer going forward.
Sooner or later, a state of equilibrium will return to the demand vs supply for shipping globally. When this time comes (2006?), there will be a number of hibernating coastal service links around New Zealand that will spring back into life again. This will result in an increased number of visits to South Port as shipping lines look to close the gaps that presently exist in their service schedule.
The investment in infrastructure was made before the shipping lines cut back their service schedule. Essentially all that is required by South Port is an investment in personnel when the time comes.
Regards JAMP
NZX: MCH MFT RBD SAN SKX SPN VTX WRI
Unlisted: BRK -
09-10-2004, 07:41 PMmorv
the way the world price of coal is rising southport could become an export port for southland coal[ohai] orbarged west coast coal.
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09-10-2004, 09:36 PMPLYNCH
"Cheeky bid $1.15 bid"
If you ask me your $1.15 bid is generous.I have watched this stock since its listing and have never been tempted to buy. why
Too small(for a port)
Very average management
Its too easy for southlands exporters to truck/rail there products north.
The only reason I can see to buy is for southlanders wanting a local income stock.
LPC looks a better buy to me(as long as Toll rail can get the coal over to them!)
I may be tempted to buy if the sp drops to 75c.
Anyway good luck to those of you who can see value in SPN.:)
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10-10-2004, 07:58 AMJAMPYou are 100% correct.Quote:
quote:Its too easy for southlands exporters to truck/rail there products north.
But doesn't the same potential scenario exist for practically every exporter in the country? There is always going to be the option of using road/rail to gain access to another port. Of course should our exchange rate weaken (and the price of oil remain at or near present levels) I would expect freight rates to go through the roof. Then the nearest port option becomes significantly more attractive...parochial province factors excluded.
Prior to the rationalisation of the shipping service, Southland exporters were beginning to embrace the efficiencies they could achieve out of South Port. This was reflected in the growth of containerised cargo crossing the wharves. To my mind there is no reason to think that they won't be able to grow the business again when external demand pressures for shipping is met.
Regards JAMP
NZX: MCH MFT RBD SAN SKX SPN VTX WRI
Unlisted: BRK
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10-10-2004, 08:14 AMduncan macgregor
JAMP, SPN are going nowhere in the short term. Why people buy into shares like this and watch their money stagnate is beyond me. Then you might know something that i dont know which will prove me wrong. Good luck macdunk
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10-10-2004, 09:08 AMPhaedrus
Not quite right Macdunk. In the short term, SPN is going [u]down</u>. It is in the long term that it is going nowhere - the current price is pretty much where SPN was over 10 years ago.
This stock could be traded using a moving average such as a 400 day sma, but it is not really a good trading candidate either.
http://home.ripway.com/2003-11/39768/SPN001.gif -
10-10-2004, 10:56 AMglennj
Plynch your assertion that it is too easy for SPN's customers to truck/rail their product north doesn't stack up. NZAS imports & exports make up over half the cargoes and they would not use another port. With the forest products which are the 2nd largest cargoes, especially the high volume lower value ones such as logs and woodchips it would not make economic sense to change ports as added freight costs would remove profitability.
Petroleum, fertiliser etc could move but it is unlikely because of the dedicated facilities &
freight cost implications. -
11-10-2004, 05:28 PMSteveWell, it appears that your guess was 100% correct!Quote:
quote:Originally posted by JAMP
I was interested to see a total of 1,434,776 SPN shares trade yesterday (representing around 5.4% of total shares on issue).
After a squiz through the Annual Report I am guessing that the seller was Tasman Pacific Insurance Ltd.
If only you could guess share prices as accurately...:D:D:D -
11-10-2004, 06:45 PMthereslifeafter87
The chart looks like this is a prime candidate to sell short...
Phaedrus, I would love it if you would post a chart on ION on the ASX thread... Thanks in advance.
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11-10-2004, 09:22 PMPhaedrus
Tla87,
It's fairly late in the day to be talking about shorting this stock. Obvious earlier entry points would be :-
(1) After the Head and Shoulders pattern formed at the top where the uptrend went straight into a downtrend. They are a reversal pattern, remember! That would have been a logical time to go short, with a high probability of success.
(2) When price action broke below a longterm moving average such as the 400 sma depicted.
(3) After the bearish "Double Top" pattern formed at the end of last year.
The later in the trend such a trade is entered, the higher the risk and the lower the potential return. I personally wouldn't short SPN now, even though it continues to look weak, technically.
I am loathe to post charts on the Australian forum. I'm spending too much time here as it is, without opening up a "second battlefront". It seems I can't just post a chart - I then have to spend an awful lot of time explaining, justifying and defending it. I simply can't be bothered. My apologies to you and Cantab, who also asked very nicely. -
12-10-2004, 01:04 PMthereslifeafter87
Cheers Phaedrus,
I'm showing my technical ignorance here, and I don't think I will ever actually consider shorting a stock.
I just saw a (steep) downtrend, and interpreted it that way.
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12-10-2004, 01:50 PMkittydashwood
Our american friends like this stock.
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12-10-2004, 02:34 PMduncan macgregor
PHEADRUS, Keep posting your charts please, dont waste your time defending the position. Interesting position comes up, post the chart. You have enough people to defend the fort. You gave me a new insight into investing, after i gave you a bit of a hard time, but that really was to understand how with your methods i might improve mine. Thats what it is all about the dumb people will never change a fixed idea.
macdunk. -
12-10-2004, 03:20 PMPlacebo
So MacDunk, if you were to buy a port company now, what would it be? Take it from me, you can't go past POA. It's a superb company. If you've held this and sold out in the last year, you're a fool. Never mind what the staff say
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12-10-2004, 03:50 PMduncan macgregor
PLACEBO, POA has been good to me bought on 13th sept 2003 at $6-25 sold at $8-10. The share price has downtrended since then and at the same time the market has gone up. I started telling everyone to buy POT which I did at $4-44 and now the price is nearly $6-00.
SPN ,LPC,POA, all have one thing in common POT. POT has made serious inroads into their profits one way or another. I was lucky enough to to realise what they were up to, and got on board early. The only port share worth holding as far as i could see for the last year has been POT. Next 12 months POT, after that who knows every good thing becomes over valued and drops. If POA drops low enough or SPN then they come into contention, but not at this moment in time.
cheers macdunk -
12-10-2004, 04:36 PMPlacebo
Yes MacDunk, as you've probably discerned I was yanking your chain there. You've championed POT long and loud, and with good reason. Looking at the chart there's a nice wee spike, you could quite happily pocket a profit there.
Fight the good fight! -
12-10-2004, 05:38 PMglennj
MacDunk please justify your statement that POT has made serious inroads into LPC & SPN profits.
We've discussed POT before & I suggested you would do even better with some serious research to go with your "momentum" investment style. Talking to the tea lady is just a small part of it. Good on you for your successes. Remember to make use of stop losses if you are relying on momentum & little else though. Also watch those transaction costs.
"Momentum investors buy outperforming stocks and sell them when the price flattens off" Many people try and play the same game pushing the price up to get in & driving it down to get out. Dreman says "there is little documentation from the Schools or from the Street that momentum beats the market"
If you also took a value approach I suggest it would help as you would get in at a much better entry level. IMO POT is a very good company but is now over priced. SPN & LPC are much more moderately priced, have good dividend streams and will be doing much more business in the future than they are now. OK current returns are not doing much now, around 10 - 18% pa including divs depending on when bought, but they will do better.
It's always worth looking at a different perspective. -
12-10-2004, 06:13 PMduncan macgregor
GLENJ, My average is only four trades per year, my maximum share holding max five. I really dont give a damn about the value if i have to wait to long. I am in this game to make money, nothing else i dont fall in love with a company, or buy in saying nobody understands them. I do the home work, share what i learn and thats it.If you dont know the influence of POT in the south island you soon will. I make mistakes, but when i do i told you first. Previousely on sharechat and now here, so it is easy to say i got it wrong. Nobody has so far, so like it or not, i pick the winners. Keep an eye on me and give me heaps if i fall over cheers Macdunk
DISCL HQP, POT,PGG,NOG, -
12-10-2004, 08:40 PMglennj
Ta for your views MacDunk. We are all in the game to make money. Was offering you another string for your bow. (Often a bit of a wait is
well worth it)
Am always watching the port companies so we will see what transpires.
One thing we do have in common is that we both hold PGG -
03-02-2005, 07:57 PMFish Broker
Their first half 05 result is expected to be announced tomorrow - and the share price has been firm for the last 4 months on little news other than a reshuffle on the board and a 5% stake (which I think was originally Infratil's) changing hands again.
Why the firmness in price? - are people expecting the lost shipping has been replaced?? or are buyers anticipating another special dividend which the balance sheet could allow.
Then again what about that additional capex that was spent and that we were told about last year to better service the container lines.
Just wondering what people think. -
04-02-2005, 10:01 AMFish Broker
South Port Result Follows - does the final paragraph mean we may be in line for a special dividend or another capital return???
Text of the release as extracted from NZX site, follows:
***********************************************
Company Code Released Type Headline
South Port New Zealand Limited (NS) SPN 4 Feb, 2005, 09:23 HALFYR SOUTH PORT INTERIM RESULT
Full Text of Announcement
HY to 31/12/2004 $1.091m ($1.310m) Div 1.75cps
CONSOLIDATED OPERATING STATEMENT FOR THE HALF YEAR ENDED 31/12/2004
Unaudited (NZ$000)
Current Period (Previous Corresponding Period)
OPERATING REVENUE
Trading revenue 6,293 7,747
Other revenue 210 12
Total Operating Revenue 6,503 7,759
OPERATING SURPLUS (DEFICIT)
BEFORE TAXATION 1,543 1,961
Less taxation on operating profit (452) (651)
OPERATING SURPLUS (DEFICIT) AFTER TAX 1,091 1,310
Extraordinary items after tax - -
Unrealised net change in value of investment properties - -
NET SURPLUS (DEFICIT) FOR THE PERIOD 1,091 1,310
Net Surplus (Deficit) attributable to minority interests
- -
NET SURPLUS (DEFICIT) ATTRIBUTABLE TO
MEMBERS OF THE LISTED ISSUER 1,091 1,310
EPS 4.16cps 4.99cps
Final Dividend: 1.75cps
Record Date: 04/02/2005
Payment Date: 04/03/2005
Imputation tax credit: Fully imputed
Lower First Half for South Port
Under-utilisation of container handling infrastructure at Bluff caused by shipping industry cutbacks in response to soaring charter rates has continued to impact on South Port New Zealand Ltd into the 2005 year.
As signalled in the 2004 Annual Report and again at the 2004 Annual Meeting, the 2005 year is shaping as a "more challenging trading period for the Company," says the Chairman of South Port, Mr John Harrington.
South Port benefited from strong growth in containerised cargo in the half-year to 31 December 2003 as a result of the Trans-Tasman Butterfly Service calling at Bluff on a weekly cycle.
This service ceased in January 2004 and as a consequence, containerised cargo volumes have shown a decrease. "The inability to date to attract a replacement Trans-Tasman shipping service or coastal container linkage has meant that South Port's marine and cargo handling resources have not been fully utilised."
Secondly, as a direct result of high foreign exchange levels and increasing ocean freight costs, the export of logs through South Port ceased at the start of the current financial year.
"Until such time as these economic factors show improvement, key exporters of logs will be unable to achieve acceptable margin levels and therefore be forced to extract value from their product in the domestic market," says Mr Harrington.
"On a more positive note, firm import tonnages were registered in fertiliser and petroleum products while export volumes saw lifts for sawn timber, medium density fibreboard, pebbles and general cargo."
Recorded cargo volumes at 1,014,000 tonnes in the six months ending 31 December 2004, fell 10% from 1,129,000 tonnes in the previous corresponding period.
Operating revenue was $6,479,000, compared with $7,759,000 in the first six months of the 2004 year.
Earnings before interest and taxation were $1,732,000 ($2,152,000 in 2004). Net profit after taxation at $1,090,000 ($1,310,000 in 2004) is back 18% and is regarded as satisfactory by Directors when all external factors are taken into consideration. Included in the interim profit is a one-off property transaction gain of $186,000 (nil in 2004).
Reflecting a more difficult trading outlook, the directors have declared a fully imputed interim dividend of 2.25 cents per share (2.75 cents in 2004), payable on 5 March 2005.
South Port's largest cargo volume customer, New Zealand Aluminium Smelters (NZAS) is evaluating several options related to its long-term energy requirements and some could potentially have a positive impact on South Port. NZAS currently moves over 1 million tonnes of raw material and finished metal annually across the South Port owned Tiwai W -
04-02-2005, 10:19 AMcraic
I was in this on for years and did reasonably well but about a year ago I decided that it didn't really have anywhere to go and my money was better spent elsewhere. That is still the situation.
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26-08-2005, 08:20 PMJAMP
Full-year announcement to 30 June 05 is pending. I am guessing that we will see a release early next week.
Interesting 11c rise in the shareprice today. Low volume, so I am thinking it is but a coincidence. But then again, perhaps the directors have stopped assessing "the most effective use of the Company's strong balance sheet."
Regards JAMP
NZX: AIA CHA LPL MCH MVN NOG PPG RBD SAN SKX SPN
NZAX: CVT
Unlisted: BRK -
14-09-2005, 08:13 PMwinner69
That 11 cent rise was shortlived jamp
Not an entirely inspiring result was it
Looks like $2M a year is their lot and so dividend likely to remain at 6.5 cents for some years
So waht do you pay for a 6.5 cents dividend stream these days?
Looks like 125 and the market is happy with a miserable 7.7% gross yield
With downsides outweighing potential upsides not for me
About the same yield as Snoopy's LPC ... some consistency there -
14-09-2005, 09:48 PMJAMP
Perhaps too much parochialism, and not enough common-sense w69.
I wasn't too disheartened by the result. They will never set the world alight, but they have the infrastructure in place ready to burst into action in the event a new feeder service to the hub (Lyttleton?) is established. Their day in the sun will come.
Regards JAMP
NZX: AIA CHA LPL MCH MVN NOG PPG RBD SAN SKX SPN
NZAX: CVT
Unlisted: BRK -
15-09-2005, 12:33 PMglennj
For those that follow this stock & I do the result was very much as expected. It's not a world beater but it has a sound dividend stream with the prospect of periodic special dividends.
In the medium to longer term I see good upside prospects for this stock & little downside. The rumours that the smelter, a major customer, might close are just that. I see they have secured an agreement sheltering them from harmful effects of the Kyoto protocol. Loss of the overseas earnings and jobs if the smelter were to close would be catastrophic so I can't see any government letting it happen.
With a drop in the dollar SPN will generate considerably more business. Forestry cargoes have recently resumed despite the high dollar & wind farming developments will deliver unexpected cargoes.
I believe this is a stock for the buy & hold brigade rather than traders. Steady divs now with the strong chance of capital appreciation as well in the medium to longer term. -
16-09-2005, 08:25 PMJAMP
I had a read of the SPN Annual Report 2005 last night. I rate it well - it was well laid out and an easy read. I have taken the liberty of quoting two items from the outlook section in the "wordy bit".
I have no problem with the company having a strong balance sheet. They are aware that it is probably a little too strong to deliver optimum benefit to shareholders. The bit that piqued my attention was the fact they are exploring the potential for opportunities elsewhere in the transport and distribution sector.Quote:
quote:<center>The Company is conscious of the strength in its balance sheet
and
may include the involvement of South Port in other elements of the transport and distribution sector.</center>
<div align="right">Source: Pg 9, SPN Annual Report 2005</div id="right">
I for one would be mighty keen if such exploration eventuated in them taking a stake in a coastal shipping operation.
To my way of thinking, utilising their balance sheet strength in such a manner would put South Port in a beneficial position (established feeder service) when the widely anticipated rationalisation of export shipping routes eventuates. It would also communicate to exising and potential clients that South Port is serious about being the preferred gateway for Southland goods leaving Southland.
Regards JAMP
NZX: AIA CHA LPL MCH MVN NOG PPG RBD SAN SKX SPN
NZAX: CVT
Unlisted: BRK
glennj, as an aside your middle initial isn't "O" perchance? -
17-09-2005, 08:23 AMglennj
;)
I've mentioned in earlier posts that I am or have been a holder in various port companies including SPN. -
27-02-2006, 08:25 PMJAMP
SPN closing at $1.35 - it kind of defies logic to see this stock hitting 52-week highs a little over 1 week after going xd.
I guess what we are seeing is a combination of the exchange rate swinging favourably, ports being (generally) flavour of the month, and a strong balance sheet.
I think I'll continue to hold for just a little longer.
Regards JAMP
NZX: AIA LPL MCH MVN NZO NZOOD PPG RBD SAN SKL SPN
NZAX: CVT NWFOA SAT
Unlisted: BRK -
21-12-2010, 09:49 AMLizard
Profit upgrade from SPN.
I noticed one smart cookie picked this in the 2011 NZX comp.
Was one of the first four shares I held on the NZX, but hadn't looked cheap when I checked it last. I seem to remember from back when I followed, that there was a wall of wood heading towards the port at some point from the 1980's-1990's forestry plantings. However, also quite exposed to Tiwai Point smelter operations. Seems it also benefits from improved southern agriculture. Maybe worth a closer look at some stage. -
06-05-2011, 09:48 AMLizard
And another good forecast upgrade from SPN. Well done to CJ and robo who picked it in the comp this year.
Still doesn't look "cheap", but yield supports it and a bit more recovery growth might keep it moving in the right direction for a while. I seem to remember that ports did well in the mid-90's coming out of the earlier troubled period, although that is no guarantee of a repeat. -
01-09-2011, 10:41 AMLizard
With final result out, SPN has done well this year. However, the forecast is for 15-20% reduction in tax paid profit for 2012, so may not be much more in it...
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27-01-2016, 04:01 PMBuffett Jr
Does anyone hold South Port?
Interested to see why importers/exporters would use South Port as opposed to Lyttleton Port instead? Is South Port a monopoly or a big risk with Rio Tinto's smelter potentially closing in the future?
I came across this company after running a stock screener through google and the financials of the company look quite sound, but unsure about the future of the port. -
27-01-2016, 08:06 PMaxeDo not hold.Quote:
Originally Posted by Buffett Jr
They were looking to dairy as playing a big role in growth for south port when milk solids price was high . Lots of dairy conversion happening around southland. Not sure how those conversions will be working out now with current farmgate prices and how that will impact SPN. -
27-01-2016, 11:01 PMBuffett JrYes, seems like a risky little port actually now I look deeper into it. The smelter contract may close in 2 years and by the looks of their latest annual report and media articles I've read over the last few days it would have a huge impact on the southland economy and south port.Quote:
Originally Posted by axe
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27-01-2016, 11:19 PMCarpenterjoeYeah I've got a few, one of my first investments some fifteen years ago,Quote:
Originally Posted by Buffett Jr
Things I like,
Very Very tightly held,
Small amount of shares on issues 26mil,
Southland council have about 60-80%
Dividend is nicely increasing
They always clip the ticket
Room for growth, plenty of cheap land,
They don't issue new shares or I haven't been aware of it.
I'm not sure how keen the government are on that extra power becoming available.
I had in my head the smelter only affected import/export by 10%-20%
Things I don't like,
Boring, don't find ports interesting.
I'll never get rich of these guys, steady as she goes. -
25-05-2018, 03:05 PMblackcapStill holding? bid at $6.70 now after profit upgrade this morning! keeps on trucking...http://nzx-prod-s7fsd7f98s.s3-websit...505/279892.pdfQuote:
Originally Posted by JAMP
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25-05-2018, 03:54 PMSideshow Bob
Great thread dredge BC!
If you bought at time of the first post on this page, would have returned 408% on share price, plus divvies. -
25-05-2018, 03:56 PMblackcapCheers SB, yes it would have been a great investment, the divvies now would be huge in relation to the purchasing price. I actually bought a small parcel recently so am following developments at SPN keenly. Nothing like a small profit upgrade to keep things ticking along.Quote:
Originally Posted by Sideshow Bob
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05-08-2020, 11:43 AMSgt Pepper
The announcement of rio tinto closure of Tiwai Point Smelter has not, to date impacted on South Port share price to a great extent. Does anyone know what proportion of South Ports Revenue derives from the Smelters aluminium exports?
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05-08-2020, 11:54 AMpeat
Did you read their announcement ?
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05-08-2020, 12:08 PMSideshow Bob
1/3 of their cargo and circa $2m of their NPAT
https://www.nzx.com/announcements/356023 -
06-08-2020, 06:56 PMnztxQuote:
Originally Posted by Sgt Pepper
SP is currently down approx $1 on that, mind you fluctuates a bit during the year.. -
03-09-2022, 06:45 AMRicky-bobby
Hey gang, anyone holding these? A couple of questions:
- how many deep sea ports are there in Nz? Any in the South Island?
- will recent dredging make this a reality for Southport?
- is it mainly just serving the smelter?
Cheers! -
10-02-2023, 09:11 AMSideshow Bob
https://www.nzx.com/announcements/406471
South Port retains positive outlook despite short term market disruption The South Port 2023 first half has been characterised by excellent progress being made on some longer term initiatives for the Port, but with subdued operational performance reflecting demand constraints in China and a slowing domestic economy.
Bulk cargoes through South Port New Zealand held up well in the opening half-year of FY2023, to 31 December 2022, however slightly behind expectations. Total cargo moved through the Port of Bluff at 1,732,000 tonnes (compared to 1,745,000 tonnes
in FY22).
Container volumes continue to be negatively impacted, showing a decline for the same reporting period.
Operating revenue earned for the half-year stood at $24.94 million (FY21 $23.34 million).
South Port’s NPAT for the first six months of FY2023 was $5.2 million (FY2022 $5.9 million). Earnings per share were 19.6 cents (FY2022 22.4 cps).
Having regard to the forecast year-end result, the directors have declared a fully imputed interim dividend of 7.50 cents per share (1H2022 7.50 cps) payable on 7 March 2022.
Contributing factors to the slow start to the year, include:
• The downward cycle in the log market due to the currently depressed property market in China.
• Reduced fertiliser volumes, which are likely to remain similarly impacted for the remainder of FY2023 due to depressed sheep and beef prices.
• Increased financing costs due to upwards movement in interest rates and additional debt on the balance sheet.
As outlined above, total cargo flows were 13,000 tonnes or 0.7% below the prior year’s interim period.
Increases were registered in stock food (+28,000), alumina (+24,000), and woodchips (+35,000), however, other bulk cargoes were negatively impacted with logs (-16,000), fuel (-20,000), and fertiliser (-44,000) all down in comparison to the prior half-year.
International container supply chains continue to be significantly disrupted and this will continue until there is a return to normal shipping windows, especially at the larger container ports in New Zealand, says chief executive Nigel Gear.
“Containerised cargo decreased 13% to 18,000 TEU (FY2022: 20,800 TEU). The main decreases were imported products for the manufacturing and farming sectors.”
Container vessels transiting the Port were the same as last year at 17 calls.
OPERATIONS
Warehousing – Market and container service disruption has also had an impact on our warehousing division with a steady build-up of cargo in our cold and dry stores.
Several export orders near the end of CY22 however, relieved some of the significant build-up that was beginning to strain our available capacity.
Marine support – The tug Te Matua is back in service having been dry-docked in 4Q2022 for a 5-year survey. The new tug Rakiwai has completed 12 months of service, during which there has been extensive training of pilots and tugmasters. The Rakiwai is proving to be an excellent addition to our towing capacity.
PROJECTS
On 31 August 2022, South Port was granted resource consent by Environment Southland for project Kia Whakaū. The removal of fragmented rock under an existing consent nearly achieved one of the objectives set out in project Kia Whakaū, to reach
9.7m CD in the harbour entrance channel.
The successful completion of the Kia Whakaū project will provide additional capacity to load more cargo on vessels calling at the Port, increase efficiencies, and provide a safer transit through the entrance channel. The completion of the project will also
enable the Port to service future growth opportunities. The Port is currently working through contractual requirements and we expect that work to complete this project will begin in the second quarter of CY2023.
South Port has provided port and shipping responses to Meridian Energy and Woodside Energy as they move forward to the development stage of the proposed Southern Green Hydrogen project in Southland.
The market awaits the outcome of discussions between New Zealand Aluminium Smelter (NZAS) and electricity generators over a potential supply contract that will allow the smelter to continue operating after December 31, 2024. South Port believes there is the capacity to support both NZAS and the establishment of a
hydrogen plant in the region post-2024.
It is pleasing to see that the first stage of Mercury Energy’s 240MW Kaiwera Downs wind farm, 15km east of Gore, has begun development.
OUTLOOK
“The war in Ukraine, the rate of economic recovery in China and the threat of a global recession are impacting marketplaces and this has a flow-on impact on commodity prices,” said Mr Chapman.
“The container supply chain is still disrupted and although expectations are that it will improve, the timing is unclear.”
Based on all factors currently known, South Port provides guidance for FY23 earnings in the range of $11.10 million to $11.60 million (versus FY22 $12.8 million).
In the event that the FY2023 year-end profit is within the above forecast range, the Directors expect the full-year dividend will be at least consistent with that paid in FY2022.
ENDS -
13-11-2023, 10:07 PMOliver Mander
A little-used thread - but thought you might be interested in this blog post from NZSA on South Port.
Most don't have the opportunity to visit the port first-hand, so this may help add a little 'colour' to your analysis.
I was representing NZSA proxies at their shareholder meeting, so there is a short section on the actual meeting as well.
Quality never goes out of style... - New Zealand Shareholders' Association (nzshareholders.co.nz) -
14-11-2023, 01:01 AMnztxQuote:
Originally Posted by Oliver Mander
Thanks Oliver for your article link - appreciated -
14-11-2023, 09:15 AMSideshow BobInteresting read - thank you. :)Quote:
Originally Posted by Oliver Mander
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14-11-2023, 09:34 AMRicky-bobby
Thanks for posting! So reading the article, the smelter “rents” its wharf? Anyone know what % business this represents?
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14-11-2023, 10:25 AMSnoopyI had a look in the annual report for youQuote:
Originally Posted by Ricky-bobby
https://southport.co.nz/assets/repor...ual-Report.pdf
From page 7
"Operates a separate dedicated fuel berth at Bluff Town Wharf plus provides the Tiwai Wharf facility to the New Zealand Aluminium Smelter (NZAS) under a long-term licence."
Page 11 shows a graphic where NZAS accounts for 25.8% of bulk imports, 7.1% of bulk exports, 23.8% of container exports and 2.4% of container imports.
From page 21
"NZAS represents 20% of our NPAT and 30% of our cargo base."
Page 85 shows a picture of 'Tiwai Wharf'.
Page 100 talks about an 'impairment test' carried out to evaluate what might happen if NZAS pulls the plug on operations in FY2024. Further down on that page there is a detailed description of leased assets by 'a port customer' (obviously NZAS).
That should cover off your question I think.
SNOOPY -
16-02-2024, 01:33 PMSideshow Bob
https://www.nzx.com/announcements/426328
NZX Announcement and Media Release
NZX: SPN: South Port New Zealand
Reduced volumes across most of South Port’s key commodities, and inflationary pressure on costs have negatively impacted South Port’s financial performance in the first half of the financial year.
“The agricultural and forestry sectors have been under significant pressure for several months due to poor market conditions, which is negatively reflected in most of our import and export bulk cargoes, says Chair, Philip Cory-Wright.”
This deterioration in trade is common across the port sector and unfortunately South Port is not immune.
These market conditions have been reflected in South Port’s net profit after tax (NPAT) for the first six months of FY2024 at $3.0 million (FY2023 $5.2 million).
Total cargo activity was 1,488,000 tonnes (FY2023 1,732,000 tonnes). This represents a decrease in cargo flows of 244,000 tonnes or 14%.
Increases were registered in cement (+14,000 t) and timber (+17,000 t), however other cargoes were negatively impacted with woodchips (-72,000 t), logs (-68,000 t), alumina (-43,000 t), stock food (-39,000 t) and fertiliser (-37,000 t) down in comparison to the prior half year.
108 large vessel calls were registered (FY2023, 139 calls), a direct reflection of the reduced cargo flows through the Port. Container volumes are showing some signs of recovery with 21,000 Twenty-foot equivalent units (TEU) handled through the terminal (FY2023, 18,000 TEU).
Container vessels transiting the Port were the same as last year at 17 calls.
Contributing factors to the year include:
• Inflationary pressures on labour and materials.
• Insurance costs have substantially increased.
• Increased finance costs due to an upwards movement in interest rates and additional debt on the balance sheet.
OPERATIONS
Cold Storage Operation: The cold store operation has performed well. Increased volumes of meat products being handled, longer dwell times and reduced overheads compared with the same period last year has seen an improved result for this business unit.
Syncrolift – Dry Dock: After a major maintenance programme in FY2023, the syncrolift has shown a marked improvement in FY2024. Increased vessel dockings and reduced maintenance costs have also seen a better result for this operation.
CLIMATE-RELATED DISCLOSURES
From the 2024 reporting period it will be mandatory for South Port to produce climate-related statements according to disclosure requirements in the External Reporting Board (XRB) standards.
South Port is progressing towards meeting these requirements, to be published in this year’s annual report.
INITIATIVES
“The Kia Whakaū project to dredge and remove seabed materials to 9.7m chart datum (10.7m at high tide) in the harbour entrance channel was successfully completed and celebrated with a formal opening on 30 October 2023,” says Chief Executive Nigel Gear.
“The Company is taking a staged approach to the new draft by declaring an interim operating draft of 10.3m at high tide to assess the handling of deeper draft vessels before moving to the full 10.7m at high tide.”
Meridian Energy, with Ngāi Tahu’s support, continues working with Woodside Energy and Mitsui towards making a final investment decision in 2025 for the development of a world-class hydrogen and ammonia facility in Southland.
South Port is assisting these parties with port and shipping-related enquiries in relation to the export of green ammonia.
It has been a busy cruise period in the south, with cruise vessels transiting through the Sounds in Fiordland before making port calls at Bluff and along the east coast of New Zealand. It is pleasing that this activity has led to a record number of vessel calls into Bluff.
NEW ZEALAND ALUMINIUM SMELTER (NZAS)
NZAS is currently in discussions with the electricity generators to establish a potential supply contract that will allow the smelter to continue operating after 31 December 2024.
In early February 2024, the CEO of Meridian Energy, Neal Barclay, told a Parliamentary Select Committee that good progress is being made in negotiations with Rio Tinto which would lead to a long-term future for the NZAS aluminium smelter.
WIND FARM OPPORTUNITIES
There are a number of wind farm opportunities in Southland at differing stages of development. It is anticipated they will accelerate once the NZAS smelter’s future is resolved. The most advanced are Mercury Energy’s Kaiwera Downs and Contact Energy’s Wyndham proposed wind farms. Stage one of Mercury Energy’s 240MW Kaiwera Downs wind farm, 15km east of Gore, was completed and officially opened on 20 November 2023. Shipments for the second stage of the development, although not confirmed, are expected to begin arriving in early 2025.
A fast-track resource consent application for Contact Energy’s Southland Wind Farm project, was lodged with the Environmental Protection Authority on 22 December 2023.
If the consent is approved, it is hoped that construction would begin in 2025 with the wind farm to be fully operational by 2027.
OUTLOOK
Global events continue to create uncertainty and provide challenges to our business operations.
“The wars in both Ukraine and the Middle East are continuing to impact marketplaces, which has a flow-on impact on commodity prices and volumes handled through the Port” said Mr Cory-Wright.
“The container supply chain is facing additional challenges with the war in the Middle East escalating into the Gulf of Aden and the Red Sea, preventing shipping lines gaining access to the Suez Canal, resulting in longer transit times to market.”
The Company has invested significant capital in recent years to upgrade the Island Harbour and develop our infrastructure for future growth opportunities.
The deepening of our entrance channel is especially important as it will allow us to take greater payloads, improve the supply chain and provide safer transit for vessels calling at the Port.
There are a number of opportunities on the horizon, and we are now in the position to take advantage of these as they arise.
In February 2024, Fonterra upgraded its dairy payout forecast. In addition, good progress appears to have been made in negotiations with Rio Tinto over long term supply arrangements for the NZAS aluminium smelter. The Government has also announced a new fast track consenting process which may assist projects such as Ngāi Tahu’s proposed Hananui open ocean aquaculture farm at Rakiura (Stewart Island).
These are unlikely to have material effects on South Port this financial year but do provide some reasons for optimism that the current downturn will be short lived.
Based on all known factors at the date of releasing its 2024 interim result, South Port estimates that its full-year earnings should fall in the range of $7.3 million to $8.0 million (FY2023 - $11.7 million).
DIVIDEND
Despite the expectation of a reduced full-year earnings, the Directors have declared a fully imputed interim dividend of 7.50 cents per share (2023 – 7.50 cents) payable on 12 March 2024.
The Board will consider the Company’s financial year-end result, market conditions, and trading outlook before determining the final distribution to shareholders.
ENDS. -
16-02-2024, 02:49 PMLeemsip
Pretty simliar across the ports. Bulk exports down, containers doing ok. Overall 10% down across the board in exports. Imports 5% down..
Getting recessiony -
15-03-2024, 08:42 AMFilthy
oopsy haha! "The original announcement released on 12 March 2024 stated an incorrect figure of the Company's full-year earnings in the range of $8.0 million to $8.5 million, this should have stated $7.3 million to $8.0 million." - these guys usually pretty good with reporting. not sure if a genuine mistake or perhaps they have had to recalculate. peers POT and NPH both trading below covid lows. SPN either holding up well with low beta & limited share issue or still has another dollar or so to fall. no growth in divies last few years. can get more in the TD - which is probably safer.
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27-03-2024, 12:14 PMSideshow Bob
Currently own 66.48%
https://www.stuff.co.nz/business/350...th-port-shares
Environment Southland is proposing to sell some of its shares in South Port, saying it wants to reduce its risk exposure.
The council says there is a risk that there is a change in operating circumstances and South Port cannot maintain its forecast dividend, reducing the offset against the general rate which would result in higher rates or more debt. -
27-03-2024, 12:26 PMFilthy
might help with the liquidity eh Bob.
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27-03-2024, 01:52 PMnztxA vote of confidence in SPN from the Local Body Empire ?Quote:
Originally Posted by Sideshow Bob
how is that likely to affect the share price ? :)
more mark down .. 3.50 ultimately in range ? ;) -
30-04-2024, 01:13 PMFilthywell, finally back down to (around) covid lows; and still got some way to fall to catch up to the others. & this is before the proposed sell down. nztx guessing mid 3s. but more likely mid to low 4s I reckon.Quote:
Originally Posted by Filthy