Australian Rail-Freight Operator, Aurizon Holdings, Reports Impressive 82% Rise in Profits
By Rhiannon Hoyle
Australian rail-freight operator, Aurizon Holdings, announced today that its net profit for the first half of the fiscal year has soared by 82%. This remarkable increase can be attributed to higher earnings from the company’s rail network and coal-haulage businesses. Aurizon’s net profit for the period ending December 31 reached AU$237 million (US$155 million), compared to AU$130 million in the same period last year.
The company reported a significant growth in revenue, which reached AU$1.97 billion, marking a 16% increase compared to the previous year. Additionally, Aurizon’s underlying earnings before interest, tax, depreciation and amortization (EBITDA) stood at AU$847 million, 26% higher than the same period in the previous year.
Directors at Aurizon also declared an interim dividend of 9.7 Australian cents per share, marking an increase from the 7.0 cents paid out per share the previous year. Chief Executive, Andrew Harding, expressed optimism regarding the company’s cashflow generation, stating that it provides more flexibility to increase shareholder returns by FY 2025.
Furthermore, Aurizon reaffirmed its estimate for underlying EBITDA between AU$1.59 billion and AU$1.68 billion for fiscal year 2024.
Analyst comment
Positive news: Australian Rail-Freight Operator, Aurizon Holdings, reports an impressive 82% rise in profits for the first half of the fiscal year due to higher earnings from its rail network and coal-haulage businesses. The company also declares an increase in dividend and expresses optimism about cashflow generation. Analyst view: The market is expected to respond positively to Aurizon’s strong financial performance, leading to potential growth opportunities and increased shareholder returns in the future.
