Delivers $13.6 million H1 FY21 Profit
STL Chairman Mark Gray said the half-year results reflected another steady performance in the context of a challenging period for the Queensland sugar industry.
- STL's terminals received 3.6 million tonnes of raw sugar in the six months to 31 December 2020, a 3.7% increase on the previous corresponding period, with a peak storage of 2.2 million tonnes
- Full year operating costs for the terminals are on track to be lower than last year, reflecting an ongoing commitment to reduce costs whilst maintaining service levels
- Completed the roof replacement works at the Mackay terminal safely, on time and on budget. A two-year $22M roof replacement investment at the Townsville terminal will commence on site in March 2021. This project represents the final component of a $100 million reroofing program that has seen STL rejuvenate its storage and export operations
- STL continues to work with Queensland Sugar Limited (QSL) to implement commercial and operational best practice at its terminal operations, realising productivity and efficiency Improvements to drive down costs, and expand other income opportunities
- STL signed an agreement with Gladstone Ports Corporation (GPC) to commence detailed design on a Common User Infrastructure (CUI) facility at the Port of Bundaberg, which if the project proceeds, will enable STL to grow its service offering to customers with other commodities
- new CEO David Quinn commenced with STL on 22 October 2020, bringing to STL significant experience in supply chain logistics, asset management and business expansion
Mr Gray commented that in the face of the ongoing economic challenges facing the Queensland sugar industry, STL remains focused on delivering enhanced value by balancing increased returns to shareholders with reduced costs to customers, while continuing to explore income diversification opportunities.
"STL's focus is to maintain strict cost control through commercial and operational best practice and continue to develop opportunities for complementary storage and handling activities - while maintaining raw sugar as our highest priority" he said.
"The full year costs for operating the terminals are forecast to be lower than last year, reflecting an ongoing commitment to reduce costs without compromising service quality."
STL's Half-year Report for FY21 is available at www.sugarterminals.com.au
At its Board meeting today, Directors resolved that a dividend of 3.6 cents per share ($12.960 million), fully franked on tax paid at 30%, will be paid on 31 March 2021 to shareholders whose names are recorded on the register on 12 March 2021. This dividend is in line with the previous corresponding period.
About Sugar Terminals Limited
Sugar Terminals Limited (NSX:SUG) (STL) owns and operates six bulk commodity terminals in Queensland and plays a vital role in Australia's sugar market, handling over 90% of the raw sugar produced in Australia each year. STL's terminals provide 2.5 million tonnes of storage capacity and handle more than 4.6 million tonnes of commodities each year. In addition to around 4 million tonnes of bulk sugar, STL also handles more than half a million tonnes of other commodities annually, including molasses, wood pellets, gypsum and silica sands. STL has over $350 million in assets in strategic port locations across Queensland. We have in place 100 year leases with the port authorities at each of our six terminals. These leases include rolling options to extend for a further 100 year period.
Sugar Terminals Limited