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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news