29 April 2014
Asciano Limited (ASX: AIO) (OTCUS: AIOYY) today releases its FY14 third quarter volume update for the three months ended 31 March 2014.
Pacific National
Coal & Other Bulk Volumes3 months ended | March '13 | March '14 | %Chg |
Coal Net Tonne Kilometres (NTKs) (m) | 5,952 | 7,304 | +22.7 |
Coal Tonnes (m) | 33.5 | 40.8 | +21.8 |
Bulk Rail NTKs (m) | 1,542 | 1,362 | -11.7 |
Coal South East Australia (SEA) - Tonnes hauled increased 16.7% and NTKs increased 14.5% over the quarter compared to the pcp (previous corresponding period) reflecting haulage levels for the region significantly above expectation for the quarter
Coal North East Australia (NEA) -Tonnes hauled increased 44.4% and NTKs increased 35.7% over the quarter compared to the pcp reflecting a continuation of the strong haulage rates experienced in FY14 1H and a relatively benign wet season resulting in minimal track disruption versus the pcp
Coal tonnes hauled versus contracted was 91% for the quarter with the SEA region performing very strongly
Other Bulks - Other Bulk Rail NTKs declined 11.7% for the quarter on the pcp primarily reflecting a 22% decline in export grain volumes offset to an extent by increases in construction related volumes. Export grain volumes have been impacted by the drought in Northern NSW and Queensland and other weather impacts in Southern NSW which resulted in lower volumes
available for export than previously forecast by the Company's export grain customer base
Kelly Hibbins
Phone: + 61 2 8484 8046
Email: Kelly_hibbins@asciano.com.au
Media Enquiries:
Vida Cheeseman
Phone: + 61 408 985 008
Email: media@asciano.com.au
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New BusinessThe expected commencement date for the 4mtpa haulage contract with Bandanna Energy from its
Springsure Creek mine in Central Queensland is January 2016
Haulage for the recently secured 12 year 4mtpa contract with QCoal from its Drake coal project is expected to commence in FY16
Commissioning for Boral's new Peppertree quarry commenced in the quarter with haulage to commence in the coming quarter
The contract to haul aggregate for Holcim from the Linwood quarry, its new Rooty Hill processing plant, is expected to commence in Q4 of FY15
Intermodal
3 months ended | March '13 | March '14 | %Chg |
Intermodal NTKs (m) | 5,445 | 5,129 | -5.8 |
Intermodal Twenty Foot Equivalent Units (TEUs) ('000) | 161.7 | 154.1 | -4.7 |
Intermodal NTKs declined 5.8% for the quarter over the pcp reflecting ongoing weakness in East- West volumes. Steel volumes were flat for the quarter
New BusinessThe contract to purchase a number of the Toll Queensland rail terminals completed during the quarter. This transaction will provide a key strategic position in the Queensland intermodal market. Integration of these facilities is substantially underway
Terminals & Logistics
3 months ended | March '13 | March '14 | %Chg |
Container Lifts ('000) | 444 | 474 | 6.8 |
TEUs ('000) | 667 | 701 | 5.1 |
Container lifts increased 6.8% for the quarter driven by underlying growth in customer volume from existing services of approximately 2.2%, the commencement of the K Line contract in Fremantle, the contribution from a new service by an existing customer and the upsizing of another customer service all of which offset the negative impact of the loss of the CAX service following its cessation in March 2013
Logistics TEUs were down 9.9% for the quarter on the pcp impacted by material weakness in
transport and rail volumes from Northern Victoria and into South Australia
New BusinessThe Division commenced the recently secured K-Line service into Fremantle in January 2014 with proforma annual volumes of 90,000 lifts
The Division has recently secured three new services into East Swanson Dock in Melbourne: a
15,000 lift pa service secured in a recent contract tender; and two new contracts with proforma volume totalling 25,000 lifts commencing in April, representing container volume shifting from Webb Dock to East Swanson Dock as a result of the redevelopment of Webb Dock
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Bulk & Automotive Port Services
3 months ended | March '13 | March '14 | %Chg |
Vehicle Movements ('000) | 270 | 248 | -8.1 |
Vehicle Storage Days ('000) | 5,287 | 6,079 | 15.0 |
Automotive services reported further growth in storage days in the quarter over the pcp. However storage days have declined 20% since the peak in January 2014 reflecting lower car import volumes
Bulk PortsStevedoring activity levels over the quarter were impacted by lower volumes on the Agility contract, reflecting the wind down of that contract and lower volumes across a number of regional ports reflecting a slowdown in agricultural, general cargo and car volumes over the quarter
Group Outlook
Managing Director and CEO of Asciano John Mullen said, "We continue to expect to deliver low single digit growth in Underlying Net Profit after Tax1 in FY14 with stronger than expected growth in coal and container volumes combined with a strong focus on reducing overhead costs, offsetting weaker than expected volumes in export grain, intermodal and bulk ports.
"FY14 capital expenditure is expected to be in the range of $700-800m including the Pacific National acquisition of rail terminal properties in Queensland.
"We continue to pull the levers within our control to drive earnings growth and remain well positioned to take advantage of new opportunities that continue to arise across the business. Asciano is well leveraged to any improvement in volume growth in our key markets" concluded Mr Mullen.
- Ends -
1 Underlying Net Profit after Tax and minority interests pre material items in FY13 was $342.5m
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