Qube has reported a net profit drop of over 50 per cent due to the impact of COVID-19, bushfires, and floods during the 2020 financial year.
These impacts were offset by growths in Qube’s revenue and the commencement of new rail contracts.
During the past financial year, Qube began rail operations from the IMEX terminal at the Moorebank Logistics Park as companies including Woolworths committed to significant distribution centres at the site.
Qube also signed new contracts with Shell and BlueScope Steel. For BlueScope, Qube will provide interstate rail haulage services as part of a 10-year contract and intermodal operations at Qube’s North Dynon facility in Melbourne. To deliver the contract Qube will invest $73 million in new rollingstock and infrastructure, as well as leased equipment.
Qube managing director Maurice James said that the company’s overall performance was sound.
“The events of 2020 tested the strength and resilience of the company in ways which no-one could have predicted. This result once again demonstrates the success of our diversification strategy which protected the company as markets were hit by the COVID-19 pandemic,” he said.
“We were also able to adapt rapidly as an organisation to protect the health and safety of our people, deliver on customer requirements and minimise the economic damage to the Group. We are also well positioned for growth post pandemic with conservative gearing, and a strong balance sheet with substantial funding capacity.”
Rail will continue to play a major part in Qube’s operations during the next financial year as the company constructs the interstate rail terminal at Moorebank Precinct West along with further warehousing space. Further capital expenditure is planned in the 2021 financial year on rail terminals, precinct infrastructure and locomotives and wagons for the BlueScope contract.
Operations at Qube’s intermodal terminals will also become more automated as the company shifts from manual to automated mode at the IMEX rail terminal.