Wet weather to cut as much as $47M from QR National’s earnings
In its first results since a $4.6 billion privatisation by the Queensland government in November, QR National said revenues in the six months to the end of December rose 18 per cent to $1.75bn from $1.48bn.
However, QR National has forecast that the Queensland floods and cyclone will cut as much as $47 million from its pre-tax earnings for the full year.
Commenting on the operational impacts of the wet weather in Queensland, QR National managing director and chief executive Lance Hockridge said, “Record rainfall across the Central Queensland Coal Systems in the second quarter significantly affected coal volumes and impacted the half year.
“Devastating floods followed in January. Our focus has been on swift action and working closely with customers to maximise railings of available coal. All our systems were operational within a short timeframe and we now have more trains available than coal supply. This reflects the resilience of our assets in the face of extreme weather conditions,” he said,
The wet weather and a train derailment on the Goonyella rail system in December reduced coal volumes by about 7 million tonnes in the second quarter.
Despite the impact of the extreme weather conditions on its bottom line, QR National shares rose 13 cents, or 4 per cent, to $3.20 in early trading. This is its highest level since it listed on the ASX on November 22 and represents a 30 per cent gain for retail investors who received a discount to institutions.