Aurizon lowers forecasts in wake of Cyclone Debbie

Rail freight operator Aurizon has cut its full-year guidance after disruptions caused by Cyclone Debbie.

Aurizon’s Queensland operations were affected by Cyclone Debbie.

Rail freight operator Aurizon has slashed its full-year guidance as a result of interruptions caused by Tropical Cyclone Debbie over recent weeks.

The news forced the group’s (AZJ) shares down over 3 per cent after it exited a trading halt.

In a statement to the market this afternoon, Aurizon detailed a pre-tax earnings forecast cut of between $100 and $115 million.

It results in a new earnings before tax and interest (EBIT) projection for fiscal 2017 of $800-$850m, as against prior guidance for $900-$950m.

The group added that — of the $100m-plus impact — it expected to recover up to $80m through “regulatory processes in future years”.

Aurizon said it now had three of its four coal systems back in operation within the giant Central Queensland Coal Network, albeit at reduced capacity.

The final coal system in the CQCN is due to reopen on April 26, also at reduced capacity.

The issues with its network will trim above rail coal haulage by 12-14 million tonnes, leaving its guidance at 190-200 million tonnes, as against earlier projections of 200-212 million tonnes.

Shares in the group skidded 3.1 per cent to $5.125 by 2pm (AEST).