Qube shares rise on HY growth
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The news: Logistics service provider Qube has posted growth in its first-half earnings, as Patrick Terminals capitalised on marketshare while DP World suffered industrial relations issues.
The numbers: Qube reported an underlying revenue of $1.63 billion, representing an 8.7% rise during the six months to December 2023, compared to the prior corresponding period.
Qube's statutory net profit was up 0.9% to $112.3 million while its underlying net profit after tax was up 7.9% to $134.8 million. Underlying earnings rose 8% to $156.8 million.
Patrick Terminals, Australia's leading container terminal operator which is 50% owned by Qube, secured a 49% share of the container stevedoring market during the six-month period, as it took on additional volumes due to industrial relations challenges at DP World.
Patrick Terminals delivered a 21.1% increase in underlying net profit after tax compared to a year earlier.
Qube declared an interim dividend of 4 cents per share, compared to 3.75 cents per share in 1H23.
Qube shares were trading 2.2% higher on the ASX by 11:00am AEDT.
The context: The Sydney-based company said the result reflected higher earnings contribution from all parts of the group. In particular, Patrick Terminals was the largest driver of Qube's earnings growth over the period, reflecting a "very high market share" in the period that offset a decline in overall market volumes.
What they said: Qube's managing director Paul Digney said: "While the high interest rate environment and wider macroeconomic challenges did create challenges through the half, the combination of our strong financial position, together with our diversification by markets and geography supported continued organic growth as well as further accretive investment, including several complementary acquisitions".
The source: ASX announcement
