Asciano’s $1bn net loss saved by coal haulage

By Jennifer Perry

Net loss for the 12 months ending June 30 widened to $976m from $244m after taking into account a tax  impairment charge of $1.1bn, Asciano said.

Asciano delivered a 15% increase in Earnings Before Interest and Tax (EBIT) before significant items.

During 2010, Pacific National secured a significant number of coal haulage contracts in both New South Wales and Queensland.

“If we combine the seven contracts signed ... for both existing and growth volumes we have, in 2010, secured over $3.3bn of total revenues over an average term of 10 years. This is a significant achievement for the Pacific National Coal business,” Asciano chief executive Mark Rowsthorn said.

Asciano’s Pacific National Coal business moved more than 14.5m tonnes during the year and haulage volumes in the Hunter Valley increased by 4%.

Pacific National Intermodal achieved strong earnings despite a reduction in overall volumes hauled. Steel tonnages increased by 14% due to customer restocking and increased non residential construction which was offset by softer containerised freight volumes.

Asciano will be restructuring its portfolio of businesses and move from four to three divisions. The new structure will include: Patrick Ports, Pacific National Rail and Pacific National Coal.

“The structure in place over the past two years was extremely effective to drve out costs and deliver efficiencies,” Rowsthorn said.

“The next stage is to create synergies by integrating these enhanced businesses. The coal business will remain a standalone business to ensure there is continued focus on the significant growth opportunities in this area.”

Asciano said the outlook for the year ahead remains positive.