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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news