Queensland rail company Aurizon shakes off COVID-19 to post 28 per cent profit increase

Queensland rail company Aurizon will reward investors by paying out a final dividend after reporting a profit boost for the 2020 financial year.

Queensland freight company Aurizon has posted a 28 per cent increase in its statutory net profit. Picture: AAP Image/Dan Himbrechts

Rail company Aurizon will reward investors with a final dividend, saying its resource freight network has been able to shake off the financial impacts of COVID-19.

The Queensland-based freight company booked a statutory net profit of $605 million for the 12 months finishing June 30, a 28 per cent increase compared with financial year 2019.

Aurizon said the profit hike was largely due to the sale of its rail grinding business.

Its earnings before tax and interest rose 22 per cent compared with the previous corresponding period, booking a statutory EBIT of $909 million for financial year 2020.

Aurizon has also issued a final dividend of 13.7 cents per share, bringing the total full-year dividend payout to 27.4 per cent, which is 70 per cent franked.

Aurizon chief executive Andrew Harding said the onset of the coronavirus pandemic had no impact on the company’s coal and bulk resources networks.

“The company has delivered a solid operational and financial performance with no material impact as a result of the pandemic,” Mr Harding said.

“As an essential transport provider to the Australian economy we have provided safe, reliable services to our customers and continued to support regional communities where our people live and work.”

For the 2021 financial year, Aurizon expects its underlying EBIT to be in the range of $830-880 million. This is based on the assumption coal volumes remain flat due to the impact COVID-19 has had on steel demand.

The company booked an annual revenue intake of $3.07 billion, a 5 per cent increase compared with financial year 2019.

The company also noted it had one employee death during the year from a single road accident in December 2019.