QR National has made a first up profit of $350 million in its first year as a public company.
The country’s most successful float of the past 12 months said yesterday that it expects further sales and profit growth from resources and bulk commodities in 2012.
The 350 million profit compares with the proforma loss of $222 million in the same period a year ago.
The company said it enjoyed 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. Statutory EBIT of $205 million was achieved compared to a loss of $72 million in FY10.
QR National declared a final dividend of 3.7c.
The shares dipped 11c to a low of $3.08 before recovering to end the day up a cent at $3.21. They hit a high for the day of $3.21.
But the result could have been much better, but for the Queensland floods and heavy rain in the final quarter of 2010 and the first three months of this year.
In fact the impact of the floods has spilled over into the current financial year and is not expected to dissipate until early in 2012, a year or more after they started.
Managing director Lance Hockridge said in the statement that the floods in Queensland contributed to a 37 million tonne reduction in coal haulage volumes compared with what was expected in the company’s offer document when it was floated on the stock exchange.
"Many of our customers have experienced slower than expected recovery in coal supplies," Mr Hockridge said.
"Softer coal haulage volumes in Queensland have persisted into the first quarter, with customers continuing to report a delayed return to full production levels.
"Year-to-date we have seen coal railings in Queensland 18 per cent below volumes for the same period last year."
QR National said revenue across the group, which comprises network services, coal, freight and "another" unit, rose 11% to $3.29 billion.
Mr Hockridge said QR National had brought forward maintenance and capital expenditure in anticipation of coal supplies increasing over the months ahead.
But he expressed caution for the speed of recovery in coal haulage volumes in the short term.
"QR National expects to spend approximately $1.6 billion on capital projects in financial year 2012 to support the anticipated growth in our key markets," he said.
Mr Hockridge said the first half of 2011/12 would feature a restructure of the business "along functional lines", in a bid to achieve a more customer-focused, cost-efficient operation.
More details would be forthcoming at the annual general meeting later this year, he said.
The company listed last November.
The impact of the floods can be seen from the performance of the company’s coal division which carried 182 tonnes in 2010-11 year, while underlying EBIT fell 29% to $158.8 million.
The company said it 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.
“We have also advanced the iron ore growth strategy in Western Australia in line with our commitments, with tonnages on track for trebling to around 30 million tonnes by financial year 2014 under new and existing contracts.
“Voluntary redundancy arrangements, which resulted in more than 660 employees leaving the company during the year had an immediate impact and continues to deliver ongoing cost reductions.
"While the rate of improvement for the full year remains uncertain, as coal supplies increase over the months ahead we would expect there would be opportunities to maximise tonnages, and we have brought forward both maintenance and capital expenditure to underpin and grow throughput capability.
“On the upside, revenue quality is improving as we convert business to new form contracts and the company continues to derive efficiency gains and cost improvements from the ongoing transformation program across the business.
“Importantly, the company is in a robust financial position heading into the new financial year. We have a strong balance sheet, low gearing and solid opportunities for revenue growth and cost reduction," the company said yesterday.
