The impact of the challenging trade environment has been a factor in lower coal volumes moved during the first half of the 2021 financial year
AURIZON has reported total revenue for the first half of FY21 dipping 2% to about $1.49billionn, compared with the $1.53bn reported for the same period in FY20.
Lower volumes in coal and ‘network’ and the sale of Aurizon’s Rail Grinding business in October 2019 were listed as factors in this this decline.
Aurizon’s earnings before interest and taxes were $454.2 million compared with $455.6m in the prior corresponding period.
Aurizon attributed the EBIT results to larger earnings in bulk and network being offset by a 4% reduction in coal volumes.
This reduction was impacted by the difficult trade environment with China.
Earnings before interest, tax, depreciations and amortisisation for the half were $738.3 million, up 1% on the per calendar month.
Net cash inflow from operating activities from continuing operations increased by $73.9 million (12%) to $700.4 million.
Meanwhile the company stated that Wiggins Island Rail Project customers had not sought to appeal a ruling in Aurizon’s favour made by the Supreme Court and affirmed by the Queensland Court of Appeal.
Regarding China, Aurizon noted Australian total coal export volume to China was down 79% in the December quarter with 53 vessels holding Australian coal off the coast of China.
“Alternative export destinations have been found – however it has not completely offset the negative impact, with 10mt being redirected to markets outside China,” Aurizon stated.