QR National has announced a 17% improvement in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $813 million and a 35% increase in underlying earnings before interest and tax (EBIT) to $367 million for the year ended 30 June 2011.
Statutory EBIT of $205 million was achieved compared to a loss of $72 million in FY10.
The Directors declared an unfranked dividend of 3.7 cents per share, which will be paid on 30 September 2011 to shareholders on the register at the record date of 8 September 2011.
QR National Managing Director & CEO Lance Hockridge said the increase in underlying earnings was a solid outcome for QR National’s first full year profit result, given the impact of Queensland’s floods on haulage volumes.
“The floods impacted heavily on Queensland coal production and many of our customers have experienced slower than expected recovery of coal supplies. The wet weather contributed to a 37 million tonne reduction in coal haulage volumes compared to Offer Document expectations.
“Importantly, the company gained momentum in its transformation program with a focus on improved revenue quality, cost management and operational efficiencies, enabling a partial offset of the impact of the reduced coal haulage.
“Conversion of legacy contracts in financial year 2011 into stronger commercially structured contracts advanced ahead of expectations, covering 29% of contracted tonnages.
“Furthermore, we transported 35% of actual tonnages at higher rates during the year as the mix of railings shifted after the flood event and customers took advantage of incentive arrangements in contracts.
“The company signed long-term coal contracts during the financial year for new business in excess of 26 million tonnes per annum with a total revenue value of more than $1.6 billion.”
Mr Hockridge said QR National had progressed construction of large-scale growth projects valued at approximately $1.5 billion during the year, including the Goonyella to Abbot Point Expansion ($1.1bn) the Hay Point Expansion ($185m) and the Blackwater Electrification Upgrade ($195m).
“We’re executing our strategy and delivering major capital projects crucial to Australia’s coal export industry, on time and on budget,” he said.
“Collectively, these projects will inject more than 43 million tonnes per annum of new rail infrastructure capacity into the Central Queensland coal network, taking network capacity to more than 275 million tonnes by early 2014.
“The GAP expansion remains on budget and on track for a January 2012 opening and the Blackwater electrification project is scheduled to be delivered six months early in June 2012.”
