Freight Rail

QUBE reports dip in profits

Qube train. Photo: Qube

QUBE has reported a fall in net profits for the 2015-16 financial year, as compared with the year before.

At this week’s annual meeting, the following results were reported:

  • Underlying net profit after tax attributable to shareholders down 18% to $86.5m
  • Underlying earnings per share down 22% to 7.6 cents
  • Underlying earnings per share pre-amortisation was 8.2 cents
  • Underlying revenue and EBITDA both fell by around 8% to $1.3b and $246.3m respectively.

Statutory revenue fell around 9% to about $1.3bn and profit after tax attributable to shareholders fell by around 5% to $82m.

Statutory diluted earnings per share were 7.2 cents, a 10% decline on the prior year.

Qube attributed reduced earnings to the ports and bulk division with earnings reflecting the impact of the cessation or restructuring of four big contracts.

A contributor to the decline in earnings per share was said to be the impact of the entitlement offer to fund the Patrick acquisition.

The earnings from the Patrick acquisition will only be recognised by Qube from August 18 this year.

Qube’s cash conversion was reported to be “strong” with operating cashflow pre-tax and interest of $244.1m, or about 99% of underlying EBITDA.

Chairman Chris Corrigan, who has announced he is in his final months in the job, said the 2016 highlight was the joint acquisition of Patrick Terminals “which we regard as Australia’s lowest cost and most efficient container stevedoring operation”.

“The Patrick investment will be an important component of Qube’s long term earnings and extend the company’s supply chain capabilities to national container ports enhancing our ability to deliver efficient logistics solutions to our customers,” Mr Corrigan said.

The other milestone listed was the concept plan approval for the Moorebank Intermodal project in South Western Sydney.

This story originally appeared on Rail Express affiliate site Lloyd’s List Australia.