Aurizon looks forward to 2024 after annual profits slide 46pc

afr.com:

Aurizon has forecast higher coal and bulk haulage volumes in the year ahead after the rail group’s annual net profit fell 46 per cent to $276 million.

The sharp drop in net profit included discontinued operations such as last year’s sale of the east coast rail haulage business, which was part of One Rail Australia.

Aurizon boss Andrew Harding has told investors profits will improve in fiscal 2024. Dan Peled

Underlying earnings before interest, tax, depreciation and amortisation dropped 3 per cent to $1.43 billion. The rail haulage group warned investors in July that underlying EBITDA would be at the lower end of a range between $1.42 billion to $1.47 billion, due to wet weather, mine production issues and labour shortages.

Aurizon chief executive Andrew Harding said the company had experienced a challenging operating environment in fiscal 2023, due to prolonged wet weather, but that coal haulage volumes had been rising in the last quarter.

Earnings from coal haulage 16 slid per cent over the full year to $455 million, with tonnes hauled dropping 5 per cent to $185 million. Aurizon attributed the lower earnings to the drop in haulage volumes, higher take-or-pay costs, and the rising price of wages and materials.

Bulk haulage earnings rose 59 per cent to $214 million following the company’s $2.35 billion acquisition of One Rail Australia and higher grain and iron ore volumes in Western Australia.

Mr Harding has been trying to diversify the company away from coal by hauling more bulk commodities such as grain and iron ore.

Under a so-called “land bridge” plan revealed to investors last month, Aurizon will try to get shipping lines to offload containers in Darwin, so that the company can transport them by rail through the