Asciano profit tumbles as $9bn takeover deal takes effect

The recently acquired ports and rails operator has reported a sharp slide in profit, as export weakness hits revenue.

Gary Webb watches as a container ship is loaded at Asciano Group's Patrick dock operations at Port Botany in Sydney. (Ian Waldie/Bloomberg)

The profit of ports and rails operator Asciano, which was taken over in July this year, fell 24 per cent in its last year of operation as an independent company.

Asciano (AIO) today revealed a net profit of $272 million for the year through June, a 24 per cent slide on year-on-year. Revenues were down 5.4 per cent to $3.84bn.

Qube Holdings and Brookfield Infrastructure Partners joint $9bn takeover bid of the group became effective at the end of July, and subsequently Asciano shares ceased trading on the Australian Securities Exchange.

The company said revenue falls were driven by a decline in bulk rail revenue which reflected falling grain exports and mineral exports and a 10 per cent decline in the Patrick port terminal revenue.

The company was bought by a consortium comprised of local logistics firm Qube, Canadian infrastructure giant Brookfield and six global investment funds, and paid a special dividend on August 11.

The $9bn takeover was first put on the ACCC’s agenda in August last year when Brookfield made an initial approach. A rival Qube bid and then a consequent joint offer led to further delays in the competition watchdog’s assessment of a deal that it already had reservations about.