Australian port and rail company Asciano Wednesday posted a 41.2% year-on-year rise in net profit to A$342 million ($311 million) for the fiscal year to June 30, due in part to new rail contracts to haul coal in the state of Queensland and strong volume growth in neighboring New South Wales.
Revenue rose 7.8% year on year to A$3.7 billion in fiscal 12-13, the company said. Asciano's Pacific National Coal division, which provides trains to transport coal exports, contributed 27% of total company revenue.
Asciano said its coal haulage volumes rose 15.5% year on year to 138.5 million mt in fiscal 2012-13.
Chief executive John Mullen said in a presentation accompanying the results that the company expected to carry 176 million mt of metallurgical and thermal coal in fiscal 2013-14, up 27% year on year.
Pacific National Coal, which operates 245 railway locomotives and 5,960 wagons for coal exports, has a 56% share of the rail coal haulage market in New South Wales and a 21% share in Queensland, according to the presentation.
In the state of South Australia, it runs coal haulage trains from the Leigh Creek mine to power stations in Port Augusta.
Pacific National Coal's revenue net of rail access charges rose 22% year on year to A$842 million in fiscal 2012-13, while earnings before tax and interest rose 28.9% to A$287.9 million.
Asciano forecast revenue growth of 10% from its coal haulage operations over the next five years, but described current market conditions as weak.
"Terminals are very slow in 2013, but there are some signs of growth in 2014," the company said in the presentation.
Mullen said the company was working with the coal industry and port operators to resolve supply chain issues in New South Wales and Queensland.
Pacific National Coal has agreed new 10-year contracts with Anglo American and BHP Mitsui Coal to haul 7.7 million mt/year of their coal exports to port. New South Wales coal exporters Bloomfield Collieries and BHP Billiton's Illawarra subsidiary have also renewed their contracts with the company for a further 10-12 years.
Asciano also started new coal train services in July on the Goonyella rail system to Hay Point coal terminal for BHP Billiton-Mitsubishi Alliance's Bowen Basin operations in Queensland.
Investment in new rolling stock totaled A$209 million in fiscal 2012-13 to meet new contracts with BHP Mitsui Coal to haul 4.2 million mt/year and Rio Tinto to haul 8.5 million mt/year, Asciano said.
Net operating cash flow for the Asciano group totaled A$598 million in fiscal 2012-13, down 1.7% year on year, due to an extra tax payment of A$29.8 million, the company said.
"Operating cashflow is expected to continue to grow strongly as the business generates returns on the significant capital investment over the last few years," the company said in the presentation.
Asciano had A$3 billion of net debt on its balance sheet at the end of June, up from A$2.7 billion a year earlier. Its net debt to earnings ratio improved from 6.5 in fiscal 2008-09 to 3 in fiscal 2012-13.
The company's shares on the Australian Securities Exchange were trading at A$5.42/share at 3 pm Sydney time (0500 GMT) Wednesday, up 3.6% from Tuesday's close.
