Announcement
MKTUPDTE: SPN: Covid-19 Pandemic Update
04:52pm
SPN
27/03/2020 16:52
MKTUPDTE
NOT PRICE SENSITIVE
REL: 1652 HRS South Port New Zealand Limited
MKTUPDTE: SPN: Covid-19 Pandemic Update
NZX & MEDIA RELEASE
27 March 2020
Covid-19 Pandemic Update
South Port is classified as an essential service and continues to operate
under the Covid-19 Level 4 restrictions announced by the Government on 25
March 2020.
During the period of the lockdown South Port's priority will be to safeguard
the health, safety and wellbeing of its staff, while ensuring essential cargo
can continue to access the Port for both import and export.
South Port Chief Executive, Nigel Gear said today that "the Company has
comprehensive Covid-19 response plans in place to protect staff and ensure
business continuity."
"These contingency plans and the cooperation and commitment of South Port
staff is enabling the business to continue to operate to deliver essential
services to the region."
At the time of the release of the Company's interim result on 13 February, Mr
Gear said "the recent outbreak of the coronavirus has sent ripples through
the international marketplace, impacting tourism and trade. There is a fair
amount of uncertainty as to the level of impact however the Port will notify
shareholders should there be any material changes in the coming months."
Mr Gear now says "the national impact of the pandemic and the necessary
Government response to it has escalated dramatically since 13 February.
South Port is fortunate that two-thirds of its cargoes are classified as
essential, and in the case of NZAS are exempt from the lockdown
restrictions."
"The most affected cargoes are logs, wood chips and processed forestry
products which are at this stage classified as non-essential."
"The loss of these cargoes together with unbudgeted additional labour and
other costs associated with changed operational requirements will have an
impact on the current year profit."
The Company in its 13 February interim profit announcement, said that "based
on all known factors at the date of releasing its 2020 interim result, South
Port estimates that its full year earnings should fall in the range of
$8.2M-$8.7M (FY2019 - $9.79M)."
South Port Chairman, Rex Chapman today said that, "based on all known factors
we now expect full year earnings to be at the lower end of this range or
slightly less. This guidance is based on a number of assumptions and most
importantly that the integrity of the supply chain for essential cargoes
remains intact. Further updates will be provided if there are material
changes."
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr Nigel Gear
Chief Executive
South Port New Zealand Ltd
Tel: (03) 212 8159
Email: ngear@southport.co.nz
Mr Rex Chapman
Chairman
Mobile: 027 454 8455
Email: rex.chapman@cplaw.co.nz
End CA:00350841 For:SPN Type:MKTUPDTE Time:2020-03-27 16:52:37
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