For personal use only
Aurizon Holdings Limited
ABN 14 146 335 622
ASX Market Announcements
ASX Limited
20 Bridge Street
Sydney NSW 2000
BY ELECTRONIC LODGEMENT
14 February 2022
Appendix 4D
Please find attached for immediate release to the market a copy of the Company's Appendix 4D for the half year ended 31 December 2021.
Yours faithfully
David Wenck
Company Secretary
Authorised for lodgement by the Aurizon Holdings Limited Board of Directors
T +61 7 3019 9000 | F +61 7 3019 0720 | CompanySecretary@aurizon.com.au
Level 8, 900 Ann Street, Fortitude Valley QLD 4006 Australia | GPO Box 456 Brisbane QLD 4001 Australia
onlyAurizon Holdings Limited usepersonal
Appendix 4D
Interim Financial Report
For the half-year year ended 31 December 2021 (1HFY2022)
This document should be read in conjunction with the Financial Report, including any disclaimer.
For | |
or further information please contact: | |
Investors: | Chris Vagg, Head of Investor Relations & Group Treasurer |
T +61 7 3019 9030 | M +61 409 406 128 | |
Media: | Mark Hairsine, Manager Media & Communications |
T +61 7 3019 5708 | M +61 418 877 574 |
AURIZON HOLDINGS LIMITED | ASX APPENDIX 4D |
HALF-YEAR ENDED: 31 DECEMBER 2021 (1HFY2022) | |
Table of Contents | |
BUSINESS UNIT REVIEW................................................................................................................................................................. | 9 |
only | |
Coal.......................................................................................................................................................................................................... | 9 |
Bulk........................................................................................................................................................................................................ | 11 |
Network................................................................................................................................................................................................. | 12 |
Other ..................................................................................................................................................................................................... | 13 |
OPERATIONAL EFFICIENCY IMPROVEMENT UPDATE .................................................................................................................... | 13 |
ADDITIONAL INFORMATION........................................................................................................................................................ | 15 |
APPENDIX.................................................................................................................................................................................... | 20 |
For personal use |
Note: Previous corresponding period (pcp) for the year ended 31 December 2020 (1HFY2021) | Page 2 |
AURIZON HOLDINGS LIMITED | ASX APPENDIX 4D |
HALF-YEAR ENDED: 31 DECEMBER 2021 (1HFY2022)
1HFY2022 IN REVIEW
Result Highlights (Underlying and statutory continuing operations)
$m | 1HFY2022 | 1HFY2021 | Variance | 2HFY2021 | |||||||
Total revenue | 1,515.2 | 1,498.4 | 1% | 1,520.9 | |||||||
only | EBITDA | 726.9 | 738.3 | (2%) | 743.9 | ||||||
EBIT | 434.2 | 454.2 | (4%) | 448.9 | |||||||
Adjustments | - | - | - | 8.2 | |||||||
EBIT Statutory | 434.2 | 454.2 | (4%) | 457.1 | |||||||
NPAT | 256.9 | 267.0 | (4%) | 266.2 | |||||||
NPAT Statutory | 256.9 | 267.0 | (4%) | 339.7 | |||||||
Free cash flow (FCF) | 362.2 | 288.1 | 26% | 300.5 | |||||||
use | Interim dividend (cps) | 10.5 | 14.4 | (27%) | 14.4 | ||||||
Earnings per share (cps) | 14.0 | 14.1 | (1%) | 14.4 | |||||||
Return on invested capital (ROIC) | 10.4% | 10.8% | (0.4ppt) | 10.7% | |||||||
EBITDA margin | 48.0% | 49.3% | (1.3ppt) | 48.9% | |||||||
Operating ratio | 71.3% | 69.7% | (1.6ppt) | 70.5% | |||||||
Above Rail Tonnes (m) | 123.5 | 128.1 | (4%) | 125.1 | |||||||
Gearing (net debt / (net debt + equity)) | 44.4% | 47.8% | 3.4ppt | 45.6% | |||||||
Performance Overview | |||||||||||
personal | › | EBITDA down $11.4m (2%) to $726.9m with: | |||||||||
current credit ratings | |||||||||||
− Coal up $12.1m (4%) primarily due to an increase in above rail revenue quality and lower traincrew and maintenance expenses. | |||||||||||
This was partly offset by a reduction in above rail revenue from lower volumes | |||||||||||
− Bulk up $0.9m (1%) due to increased grain volumes, offset by the cessation of nickel and iron ore contracts | |||||||||||
− Network down $27.3m (7%) due to the recognition of $48.9m of WIRP Fees in 1HFY2021 relating to the period March 2016 | |||||||||||
to June 2020 partly offset by lower (volume-related) revenue under-recovery compared to 1HFY2021. | |||||||||||
− Other improved by $2.9m (17%) due to higher asset sales | |||||||||||
› | EBITDA growth excluding historical WIRP fees in prior year would have been 5% for the Group and 6% for Network | ||||||||||
› | FCF increased 26% to $362.2m primarily due to lower tax and interest and acquisitions in 1HFY2021 | ||||||||||
› | Interim dividend 10.5cps (95% franked) representing a payout ratio of 75% of underlying NPAT for the continuing operations, a | ||||||||||
decrease of 27%. The dividend reduction is to support the acquisition of One Rail Australia (One Rail) given the commitment to the |
One Rail Acquisition
On 22 October 2021, Aurizon announced the acquisition of One Rail for $2.35b. There are two major components in the transaction:
1.One Rail Bulk - an integrated rail business in central Australia which will be combined with our existing Aurizon Bulk business, and
2.One Rail Coal (East Coast Rail) - a coal haulage rail business where the assets will be divested either through demerger or through a trade sale, whichever offers greater shareholder value.
The Australian Competition and Consumer Commission (ACCC) has commenced the informal merger clearance process with a provisional decision date of 10 March 2022. All other conditions precedent have been satisfied1 with consent received from the Australasia Railway
ForCorporation (AARC) and the Government of South Australia. Completion is targeted for April 2022, to be followed by the divestment of East Coast Rail.
Outlook
Underlying EBITDA guidance for FY2022 for Group remains at $1,425m to $1,500m. Group capital expenditure guidance is $540m to $580m including ~$100m supporting Bulk growth. Key assumptions are as follows:
- Coal - volumes now expected to be broadly in line with prior year with customer mix and cost management offsetting lower contracted rates
- Bulk - revenue and EBITDA higher due to recent contract wins and port acquisition on 31 December 2020
- Network - non-recurrence of retrospective WIRP fees ($49.8m) and Maximum Allowable Revenue (MAR) reduction due to capital recoveries
- Excludes EBITDA and capex for One Rail
- No material disruptions to commodity supply chains (such as adverse weather and/or impacts from COVID-19 related restrictions)
1 As at publication date
Note: Previous corresponding period (pcp) for the year ended 31 December 2020 (1HFY2021) | Page 3 |
AURIZON HOLDINGS LIMITED
HALF-YEAR ENDED: 31 DECEMBER 2021 (1HFY2022)
CONSOLIDATED RESULTS
Underlying continuing operations unless otherwise stated Financial Summary
$m
only | Total revenue and other income |
Operating costs | |
Employee benefits | |
Energy and fuel | |
Track access | |
Consumables | |
Other | |
use | EBITDA |
Statutory EBITDA | |
Depreciation and amortisation | |
EBIT | |
Statutory EBIT | |
Net finance costs | |
Income tax expense | |
Statutory Income tax expense | |
personal | NPAT |
Statutory NPAT | |
Statutory NPAT from discontinued operations | |
NPAT (group) Statutory | |
Earnings per share2 | |
Statutory | |
Earnings per share2 (continuing and discontinued operations) | |
Statutory | |
Return on invested capital (ROIC)3 | |
Net cash flow from operating activities | |
Interim dividend per share (cps) | |
Gearing (net debt / (net debt + equity)) (%) (group) | |
Net tangible assets per share ($) (group) | |
People (FTE) | |
Labour costs4 / Revenue | |
Above Rail Tonnes (m)5 | |
ForOther |
EBITDA by Segment $m
Coal
Bulk
Network
Group (Continuing operations)
ASX APPENDIX 4D
1HFY2022 | 1HFY2021 | Variance | 2HFY2021 | |
1,515.2 | 1,498.4 | 1% | 1,520.9 | |
(423.0) | (422.3) | - | (413.9) | |
(115.4) | (91.8) | (26%) | (99.6) | |
(39.5) | (46.0) | 14% | (35.1) | |
(206.3) | (194.4) | (6%) | (221.8) | |
(4.1) | (5.6) | 27% | (6.6) | |
726.9 | 738.3 | (2%) | 743.9 | |
726.9 | 738.3 | (2%) | 752.1 | |
(292.7) | (284.1) | (3%) | (295.0) | |
434.2 | 454.2 | (4%) | 448.9 | |
434.2 | 454.2 | (4%) | 457.1 | |
(64.5) | (73.3) | 12% | (72.0) | |
(112.8) | (113.9) | 1% | (110.7) | |
(112.8) | (113.9) | 1% | (45.4) | |
256.9 | 267.0 | (4%) | 266.2 | |
256.9 | 267.0 | (4%) | 339.7 | |
- | 5.2 | (100%) | 118.4 | |
256.9 | 272.2 | (6%) | 458.1 | |
14.0 | 14.1 | (1%) | 14.4 | |
14.0 | 14.1 | (1%) | 18.4 | |
14.0 | 14.4 | (3%) | 14.7 | |
14.0 | 14.4 | (3%) | 24.8 | |
10.4% | 10.8% | (0.4ppt) | 10.7% | |
710.9 | 700.4 | 1% | 576.6 | |
10.5 | 14.4 | (27%) | 14.4 | |
44.4% | 47.8% | 3.4ppt | 45.6% | |
2.2 | 2.2 | - | 2.3 | |
4,872 | 4,840 | (1%) | 4,825 | |
27.6% | 28.0% | 0.4ppt | 26.5% | |
123.5 | 128.1 | (4%) | 125.1 |
1HFY2022 | 1HFY2021 | Variance | 2HFY2021 | |
286.2 | 274.1 | 4% | 259.2 | |
74.5 | 73.6 | 1% | 66.3 | |
380.4 | 407.7 | (7%) | 441.1 | |
(14.2) | (17.1) | 17% | (22.7) | |
726.9 | 738.3 | (2%) | 743.9 |
- Calculated on weighted average number of shares on issue - 1,840m 1HFY2022 and 1,892m 1HFY2021
- ROIC is defined as underlying rolling twelve-month EBIT divided by the average invested capital. The average invested capital is calculated as the rolling twelve-month average of net assets (excluding cash, borrowings, tax, derivative financial assets and liabilities)
- 1HFY2022 excludes $4.0m redundancy costs (1HFY2021 excludes $2.6m redundancy costs)
- Includes both Coal and Bulk
Note: Previous corresponding period (pcp) for the year ended 31 December 2020 (1HFY2021) | Page 4 |
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Aurizon Holdings Limited published this content on 13 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2022 21:41:01 UTC.