Aurizon Holdings Limited
(ASX:AZJ) says it has received notice from coal companies that it may not receive certain payments on its Wiggins Island Rail Project.
Subsidiary Aurizon Network and eight coal companies signed agreements for Aurizon Network to complete the $831 million rail project on time and below projected costs which Aurizon managed to do.
In return, the rail network manager would receive above regulatory return however seven out of the eight companies are trying to exercise a right to reduce their financial exposure.
Aurizon says it disputes the notices and estimates the costs of such action at up to $27 million in revenue per year for the next 20 years.
Aurizon reported a net profit of $604 million for the 2015 financial year.
