KiwiRail is reporting a net loss for the six months to December 31 of $16.2 million, compared with a $6.8 million loss for the same period last year. The result included significant items totalling $6m relating primarily to restructuring costs.
Earnings before interest, tax, depreciation and amortisation showed an underlying earnings surplus of $27.3 million, a 22% fall on the prior corresponding period. The company’s preferred operating measure, the underlying operating surplus, came in at $33 million, compared with $35.1 million the previous year.
Chief Executive Peter Reidy says the company is focussing on its long-term growth strategy in shaping inland intermodal freight hubs which will enable KiwiRail to aggregate export freight to these sites and distribute to ports via road and rail.
Inland port rail-enabled hubs are developing across NZ (Rolleston, Whanganui, Longburn, Horitui) and are examples of strong strategic relationships with Ports and customers.
This strategy reflecting on the performance of the import/export market with revenue up $4m.
KiwiRail also released recent environmental impact figures, saying the freight carried by rail in the six months to 31 December represented a reduced heavy vehicle impact of 545,000 trips.
The Rail operator says it is saving 106,000 tonnes of CO2 emissions into the environment by removing freight from road carriers.
Reidy says KiwiRail is also focussing on productivity initiatives.
This action included staff reductions of 200 in the first six months of this financial year and fuel saving initiatives. The reductions would in the longer term save $20 – $30m each year.
“Another important focus for us is the safety of our staff, contractors and public. We are therefore pleased with an improvement of 26% in our Total Recordable Injury Frequency Rate,” says Reidy.
“Revenues were down by $20m in the first half of the financial year due to challenging market and weather conditions for two of our bulk freight commodities – coal and milk,” he says.
Healthy passenger growth in Interislander and Scenic Journeys (6% and 8% respectively) and productivity initiatives were able to halt the declining revenue.
“We are working hard on re-shaping the business to enable us to deliver on our financial and sustainability targets,” says Reidy.
This work will allow us to grow intermodal freight strategies with our customers and New Zealand Transport Agency to bring integrated transport benefits to enable export and tourism growth in New Zealand,” he says.
