Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


KiwiRail 1H operating earnings rise 7.6% on freight

KiwiRail 1H operating earnings rise 7.6% on freight, FY result to miss SCI

Feb. 28 (BusinessDesk) – KiwiRail, the state-owned railway company, posted a 7.6 percent gain in first half operating earnings as it benefited from a pickup in freight revenue and a continued drive to cut costs.

The operating surplus was $46.9 million in the six months ended Dec. 31, from $42.6 million a year earlier, the Wellington-based company said in a statement. Operating revenue rose 4 percent to $362.9 million while operating expenses dropped 3.5 percent to $316 million.

An impairment of $189.9 million, relating to the restructuring of the company, resulted in a net loss of $75.9 million from a loss of $45.7 million a year earlier. KiwiRail isn’t paying a dividend to the government.

Freight revenue rose 7.8 percent to $238.5 million in the first half. That was driven by a 21 percent jump in revenue from its import-export business. Bulk freight rose 1.3 percent, reflecting lower coal and bulk milk volumes while the domestic freight business eked out growth of 0.6 percent, which the company attributed to a flat domestic economy.

Revenue from the Interislander fell 1.4 percent to $56.3 million and for Trans Metro the decline was 7.6 percent to $21.9 million. Tranz Scenic revenue fell 6.1 percent to $9.3 million and Infrastructure declined 2.3 percent to $21 million.

Revenue from property and corporate functions rose 2.6 percent to $15.9 million.

KiwiRail forecast a full-year operating surplus of $104 million to $107 million, missing the $119 million target in its statement of corporate intent.

“The balance of the year presents some challenges,” the company said. Solid Energy’s financial difficulties may result in “significantly less coal” being moved from its West Coast mines and meaning KiwiRail is unlikely to conclude pricing negotiations.

Bulk milk volumes are likely to be below expectations on signs the dairy season will end sooner than forecast. The continued flat outlook for the economy and tepid Cook Strait passenger growth would also weigh on earnings, it said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news