South Port NZ Ltd – Interim Report to 31 December 2018

South Port New Zealand Limited - Interim Report and Interim Dividend Advice Dear Shareholder INTERIM REPORT South Port New Zealand's Interim Report for the period ended 31 December 2018 is now available on our website. You can view the Report here: South Port NZ Ltd - Interim Report to 31 December 2018 The operating performance for the half year was strong with total revenue increasing by 7.4% to $20.90 million. However increased repairs and maintenance, including the scheduled five yearly dry docking of the tug Hauroko ($838K expenditure) led to a reduction of 7.1% in net profit after tax (NPAT). South Port's NPAT for the first six months of FY2019 was $4.55M (FY2018 $4.90M). Several factors contributed to this interim result, including: ? Increased maintenance expense with the scheduled docking of the harbour tug Hauroko. ? Expectations of dry weather led to an increase of stock food imports for the dairy industry. ? New exports of containerised Medium Density Fibreboard (MDF) being packed at the Intermodal Freight Centre (IFC) and shipped on the Mediterranean Shipping Company (MSC) service through Bluff. ? Increased storage and packing activities in the warehousing division. Over the coming months it is expected that there will be a number of fluctuations in each bulk cargo category however by year end the total volume is forecast to be in line with budgeted expectations. Container volumes are tracking 10% ahead of the previous period and this positive trend is expected to continue through to the end of the financial year. Increased maintenance expenditure on the infrastructure and floating plant, as noted in previous commentary, will continue to have an impact on profitability going forward. Based on all known factors at the date of releasing its 2019 interim result, South Port estimates that its full year earnings should fall in the range of $8.60 million to $8.90 million (FY2018 - $9.66M). PERFORMANCE SNAPSHOT ? Total cargo activity was 1,772,000 tonnes for the six month period compared to 1,754,000 tonnes in the previous interim period. This represents an increase in cargo flows of 18,000 tonnes, or 1%. ? A record volume of 19,800 TEU was handled on MSC during this interim period, 10% above last year's throughput as noted above. ? Bulk cargoes continue to be the backbone of the business. Volumes were comparable to the same period last year with the exception of fertiliser (-34,000) and stock food (+22,000). ? Containerised cargo throughput increased by 10% due to an increase in both Open Country Dairy finished product exports and Daiken Southland Limited MDF exports. ? Operating revenue from continuing operations up 7.4% to $20.90M. Interim NPAT to 31 Dec 2018 Interim Dividend $4.55M 7.50 cps (no change) INTERIM DIVIDEND The South Port interim dividend of 7.50 cents per share for the half year ending 31 December 2018 is due to be paid to your nominated bank account today. Your electronic dividend advice is now available from the Link Investor Centre (South Port's Share Registry). To access your dividend advice(s) please follow the instructions below: 1. Click on the Shareholder link(s) below (each link represents a separate shareholding): [ExpressID Link] 2. Enter your Authorisation Code (FIN) for secure access. 3. Click on the icon next to the payment dated 6 March 2019 to view the payment advice. Yours sincerely Nigel Gear Chief Executive South Port New Zealand Limited End CA:00331527 For:SPN Type:INTERIM Time:2019-03-06 08:31:02