South Port’s record year opens a new growth test

Record cargo volumes drive South Port earnings

South Port New Zealand (NZX:SPN) has reported its strongest year on record, with net profit after tax rising 21.0% to NZ$16.11 million for the year ended 30 June 2026. Operating revenue increased 13.5% to NZ$71.85 million, while EBITDA climbed 15.7% to NZ$29.89 million.

The earnings result was backed by a sharp increase in activity at Bluff. Total cargo throughput rose 11.5% to 3.963 million tonnes, ship calls increased to 424 from 366, and container throughput reached a record 62,000 TEU, up 18.5%. Bulk cargo rose to 3.066 million tonnes, while break bulk increased to 232,000 tonnes.

South Port said higher agricultural activity, solid export demand, wind farm project cargo and improved New Zealand Aluminium Smelter throughput supported the result. The port handled about 16,000 tonnes of wind farm equipment for the Kaiwera Downs Wind Farm Stage II project, adding a useful but temporary boost to the year’s revenue mix.

Dividend rises as cash generation remains steady

The Board declared a final dividend of 20.5 cents per share, taking the full-year distribution to 29.0 cents from 28.0 cents. The dividend is fully imputed and represents a reported NPAT payout ratio of 47%, or 41% based on operating free cash flow, according to the annual report.

Operating cash flow was broadly unchanged at NZ$23.60 million, compared with NZ$23.67 million a year earlier, despite the stronger reported profit. South Port invested NZ$10.11 million in capital expenditure, up from NZ$7.85 million, while cash and short-term deposits rose to NZ$12.56 million. Borrowings remained at NZ$31.01 million, leaving the company with NZ$18.99 million of undrawn facilities.

FY27 begins with a tougher comparison

South Port expects FY27 trade volumes to remain broadly in line with FY26, but it does not expect the non-recurring revenue from wind farm imports to repeat. That creates a clear comparison issue for the coming year: maintaining earnings momentum will depend more heavily on the port’s established agricultural, forestry, aluminium, container and logistics trades.

The company is preparing for additional resource at the port and expects its Bluff Freight Centre conversion to be operational in September 2026. The former cold store is being repurposed as dry storage for dairy exports, adding land-side capacity as container exports and packing activity expand. A longer-term port planning exercise is also examining efficiency improvements first, before considering more substantial capital investment over a 30-to-50-year horizon.

Leadership changes arrive alongside expansion plans

Derek Nind became chief executive on 27 July, following Nigel Gear’s departure after more than 30 years with South Port, including 8.5 years as CEO. Nind previously held senior roles at Lyttelton Port and CentrePort, where he led the business through the recovery from the 2016 Kaikōura earthquake.

Chair Philip Cory-Wright will retire after the 28 October annual meeting following 16 years on the Board and as Chair. Nicola Greer is set to become Chair, while directors Peter Barker and Jacqui Nelson must stand for election. The Board is also recruiting another director after Nind’s move from the Board into the CEO role, leaving governance renewal as an immediate shareholder agenda item.

Climate reporting becomes lighter while operating risks remain

South Port has shifted from mandatory to voluntary climate reporting following proposed changes to New Zealand’s reporting regime. The FY26 disclosure is not prepared under the Aotearoa New Zealand Climate Standards and carries no external assurance. The company also removed several high-uncertainty, expenditure-based Scope 3 categories from its emissions inventory, meaning the reported reduction in total emissions is not a like-for-like comparison with prior years.

Reported FY26 emissions fell to 3,905 tonnes of CO₂e from 5,427 tonnes, while Scope 1 emissions rose to 1,998 tonnes as cargo activity increased. South Port identified sea-level rise, storm surge, extreme weather, insurance costs and changes in regional fuel demand among its material risks. A new Discharge Agreement Framework is expected to be fully operational by May 2027, subject to certification of its Environmental Management Plan.