Rail operator Aurizon Holdings Limited
(ASX:AZJ) has reported a 10.3 per cent fall in its first half net profit of $175.5 million and cautioned it faces significant costs in the aftermath of the Queensland floods.
The half year profit result was weighed down by $88 million in redundancy payments, with revenue increasing from $1.7 to $1.9 billion.
CEO Lance Hockridge says the company’s financial results were achieved despite flat coal railings figures.
Following flood damage to two of its Queensland rail systems, Aurizon says it faces repair costs of up to $15 million dollars as well as well as losses of 4 million tonnes of coal volumes, constituting a $22 million earnings hit.
Mr Hockridge said new contracts with major miners provide significant growth for Aurizon into the next decade.
