Aurizon shares up after first-half profit lift
Make us a preferred source
Make us a preferred source on Google
More news: Aurizon shares gained 2% by 12:15pm AEDT after reporting an 82% lift in profit for the first half.
The freight rail operator also declared an interim dividend of 9.7 cents per share, up from 7 cents from the previous corresponding period.
Rail operator Aurizon boosts profit as coal earnings lift
The news: Freight rail operator Aurizon reported a leap in first-half net profit as coal earnings lifted, despite losses in its containerised freight business.
The numbers: Aurizon reported a statutory profit of net $237 million for the six months to December 2023, up 82% compared to the previous corresponding period. EBITDA increased 26% to $847 million, while revenue lifted 16% to $1.97 billion.
The firm declared an interim dividend of 9.7 cents per share, 60% franked, up from 7 cents in 1H23. Full-year EBITDA guidance remained unchanged at $1.59 billion to $1.68 billion.
The context: Aurizon CEO Andrew Harding attributed a 70% drop in first-half EBITDA in the segment that includes containerised freight to "softer freight market conditions", but claimed the declines would represent "an immaterial negative EBITDA contribution” over the full year. Meanwhile, the company’s coal earnings climbed 23% to $283 million, owing to a 4% growth in coal volumes.
The source: ASX announcement
