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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news