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

 

TIL Logistics issues profit warning amid rising fuel costs

TIL Logistics issues profit warning amid rising fuel costs, bad weather

By Margreet Dietz

July 9 (BusinessDesk) - TIL Logistics Group, the trucking and logistics company that went public with a reverse listing on the NZX last December, warned full-year earnings will fall short of expectations because of rising fuel costs as well as road closures due to bad weather and big storms.

For the year ended June 30, 2018, TIL expects to deliver sales "in line with the strong first half but with lower earnings," the New Plymouth-based company said in a statement. "The full year result is expected to be below PFI (prospective financial information), due to some headwinds and a few unanticipated operational factors not included in the PFI forecasts."

In February, the company reported a loss of $15.7 million for the six months ended Dec. 31, from a profit of $2 million a year earlier. It then forecast a statutory loss of $10.3 million for full-year 2018.

"In particular, along with the rest of the transport industry, the company is being impacted by rising fuel costs and the associated delay in adjusting for this in customer pricing," the company said. "The bad weather and big storms have also been problematic, closing transport routes and impacting on the transport needs of large customers.”

While the acquisition of "a number of new customer contracts" after the expansion of the company's logistics unit "will provide strong cash flows and profitability over the long term, the short term costs required to set up resourcing for these have had some impact on results compared to PFI," the company said.

TIL also said its Pacific Fuel Haul specialist road tanker division renewed a supply contract with fuel retailer Z Energy under long-term and exclusive terms that will boost volumes and distribution coverage.

"The renewed contract covers the North and South Islands and includes cartage of petroleum and aviation fuel for both of Z Energy’s brands, Z and Caltex," TIL said.

On Friday TIL shares jumped 4.9 percent to close at $1.70.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up $1.20: $17.70 Minimum Wage Next Year

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Reserve Bank: Capital Proposals Are 'Radical', Says Fitch

International credit rating agency Fitch says the Reserve Bank's proposals for increased bank capital adequacy ratios are "radical" and "highly conservative relative to international peers", but the result will ultimately be "significantly stronger buffers" against financial system shocks. More>>

ALSO:

Regions And Skills: Work Visa Proposals 'Step In The Right Direction'

Immigration Minister Iain Lees-Galloway announced yesterday that the Government is consulting on proposed changes to employer-assisted temporary work visa settings to ensure that work visas issued reflect genuine regional skill shortages. More>>

ALSO:

Long Commutes: Hamilton To Auckland Passenger Rail Trial Gets Green Light

The NZ Transport Agency Board has approved a business case for the next steps in a start-up trial Hamilton to Auckland passenger rail service, Transport Minister Phil Twyford announced. More>>

ALSO:

Working Group Update: Mycoplasma Bovis Eradication Making Substantial Progress

International experts are impressed by New Zealand’s efforts to eradicate the cattle disease Mycoplasma bovis and are more confident the campaign is working... More>>

ALSO: