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

 

KiwiRail misses SCI targets for revenue, earnings

KiwiRail misses SCI targets for revenue, earnings as passenger, Interislander units lag

Aug. 29 (BusinessDesk) - KiwiRail, the state-owned railway company, missed its statement of corporate intent targets for full-year revenue and earnings because of weaker-than-expected returns from its passenger and Interislander units.

Operating revenue in the 12 months ended June 30 rose 7.2 percent to $715.8 million, the Wellington-based company said in a statement. The net operating surplus fell 24 percent to $77.6 million, including an $11.8 million writedown of inventory and a $15.6 million restructuring charge against its infrastructure and engineering business, which is to shed 181 jobs over the next six months.

The net result was a loss of $2.3 billion, mainly reflecting a $2.2 billion impairment as part of the already-announced $9.3 billion reduction in the value of its assets.

Revenue lagged behind KiwiRail’s SCI target of $737 million and earnings before interest, tax, depreciation and amortisation was $35 million below target.

“KiwiRail will continue its focus on reducing costs, lifting efficiency and better managing infrastructure spending so that the expected earnings are delivered,” chairman John Spencer said. “No one will thank us if we can’t make this company sustainable and making a real contribution to the country’s economy.”

Freight, KiwiRail’s biggest source of sales, continued to be the bright spot, with revenue rising about 15 percent to $457.6 million. The railway has won plaudits from companies including Port of Tauranga, which today posted a record annual profit and thanked KiwiRail for its work on the Auckland-Tauranga line.

Revenue from the Interislander rose 0.8 percent to $123.9 million, less than expected, denting earnings from that business by $4.7 million, reflecting the ongoing impact from the Christchurch earthquakes and extra costs from delays in the work to increase the size of the Aratere ferry.

Trans Metro, which operates commuter services in Wellington and Auckland, reported a 30 percent drop in revenue to $45.7 million, reflecting changes to funding arrangements that began in July last year. Trans Scenic revenue fell 5.5 percent to $20.3 million as the quakes continued to dent passenger numbers.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>



All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>


Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>