Aurizon predicts buyback up to $300m
AURIZON shares have hit a record high after the rail operator said it would conduct a share buyback of up to $300 million this fiscal year.
The rail operator’s shares were up 14 cents, or 2.4 per cent, to $5.89 at 1.17pm yesterday, and have gained 37 per cent on the year.
The rail operator said its profit dropped 15 per cent in the 12 months to June 30 as its earnings took a hit from a well-publicised decision by the Queensland Competition Authority.
Aurizon said it had statutory net profit after tax of $473 million on revenue of $2.9 billion, down 7.0 per cent from a year ago.
Its track access revenue was down by $96.8 million, cut by the QCA UT5 decision cutting tariffs it can charge coal companies.
It also had to take a $60.1 million charge to “true up” its financial statements from fiscal 2018 under that UT5 decision.
Aurizon’s coal and bulk freight rail lines outside the 2670km Central Queensland Coal Network delivered $450 million to earnings, above the $390 million to $430 million it predicted a year ago.
Aurizon said it would pay a 12.4 cents per share final dividend, 70 per cent franked, down 5.0 per cent from a year ago.
It predicted underlying earnings before interest and tax of $880 million to $930 million this fiscal year, up from $829 million in fiscal 2019.
“With the removal of much of the regulatory uncertainty that impacted our business for the past couple of years, I am confident that our team can focus on our core business, drive further transformation and provide safe and efficient service to our customers,” chairman Tim Poole said.