Pacific National takes $59m annual loss, discloses tax office audit

afr.com:

Pacific National has blamed floods and industrial action for a $59 million net loss in the last financial year. It comes amid an 11 per cent earnings slump and the disclosure of a tax audit related to acquisition accounting.

Losses taken by the private company, which is owned by a consortium of pension and investment funds and has been chaired by Catherine Livingstone since March, narrowed in the 12 months to June from $95 million a year earlier due to an $87.5 million tax benefit.

Pacific National was spun out of Asciano in 2017 and is one of the country’s largest rail freight providers. Ryan Stuart

Statutory earnings before interest, taxation, depreciation and amortisation fell to $619 million, down from $697 million a year earlier, according to accounts filed with the Australian Securities and Investments Commission by Pacific National’s parent, Australian Logistics Acquisition Holdings.

Pacific National attributed the fall in earnings to bad weather delaying trains hauling intermodal freight across Australia and along the east coast; floods disrupting trains hauling coal in NSW; and industrial action after some workers went on strike.

While the company’s revenues rose slightly from a year earlier, Pacific National’s fuel, oil and power bill rose more than $90 million to $401 million, while insurance costs and employee benefits also increased.

The company’s accounts show that, in March, the Australian Taxation Office began an audit of the ALAH consolidated tax group, focusing on acquisition-related financing between the 2017 and 2022 financial years. Pacific National was carved out of Asciano in 2017 afterthe ports and rail group was split up.

The Pacific National rail haulage business was bought by Global