Updated Trade and Profit Guidance
On 27 March South Port provided a Covid-19 Pandemic update when the Company made a slight adjustment to its profit guidance advising that it was now expected that full year earnings would be at the lower end of the previous estimated profit range of $8.2M to $8.7M or slightly less. Further updates were to be provided if there were any material changes.
South Port Chief Executive, Nigel Gear said today that “As we reported on 27 March approximately one third of our cargoes were classified as non-essential and were effected by the Alert Level 4 restrictions announced. The most affected cargoes were logs, woodchips and processed forestry products. It was anticipated that the loss of these cargoes together with unbudgeted additional labour and operating costs would have an impact on the forecasted current year profit.”
Mr Gear went on to say that “Since the lifting of lockdown restrictions there has been a strong uplift in log volumes exported through the Port. There has also been an increase of imported fertiliser and stock food, an improved contribution from our cold storage operation along with a lift in container volumes.”
South Port Chairman, Rex Chapman said that “The Company is now pleased to advise that this higher than expected trade activity late in the financial year will result in a much improved full year profit compared with earlier expectations. The Company now expects that full year earnings will exceed the top end of the previous forecast range of $8.2M to $8.7M (FY 2019 $9.7M).”