The Australian Financial Review says the floods in Queensland could chip up to 40 per cent off QR National’s
(ASX:QRN) earnings on some contracts.
The rail freight company that listed in November 2010 is likely to be impacted by the unseasonal weather conditions as it is the largest coal hauler in the state.
As QR National operates both the railroads and the trains which operate on them, the company is also threatened by losses from damage to the rail tracks.
While QR National has not yet officially outlined the expected impact of the flooding crisis, the company is believed to be involved in major recovery works at the Blackwater rail system, the only one of its four major rail systems that remains closed.
On Thursday shares in QR National closed 3.97 per cent down at $2.66.
The AFR says Macquarie issued a target price of $2.95 in December, while CLSA has issued a target price of $3.50.
