Qube dividend, profit follows JobKeeper aid

Qube’s 2.3c payout follows a 55.5pc fall in net profit, and after it took $13.5m in government JobKeeper payments.

Qube CEO Maurice James. Picture: Aaron Francis

Logistics major Qube Holdings says it has “very limited visibility” on its outlook for its key markets for the current financial year, saying it expects weaker conditions caused by the coronavirus crisis to persist through the year.

Qube said on Tuesday it will pay a 2.3c dividend, after booking a 55.5 per cent fall in net profit for the year and taking $13.5m in JobKeeper payments from the federal government.

Qube booked net profit of $87.5m for the year, on revenue of $1.9bn – up 3.4 per cent from the previous year – and earnings before interest, tax, depreciation and amortisation of $214.7m.

Managing director Maurice James said in a statement the result was a sound financial performance despite the “very considerable, unexpected and unprecedented challenges that affected the broader economy and Qube’s activities” during 2020.

The company said it took an estimated revenue hit of about $135m from the impact of the pandemic, mostly due to reduced volumes at its regional and automotive ports at Darwin, Port Kembla, Newcastle, Melbourne and Northern Tasmania.

“It is estimated that lower volumes and higher costs due to COVID-19 reduced Qube’s FY20 underlying earnings (NPAT) by over $21m, overall of which around $10.5m are non-cash expenses,” the company said.

But the outlook for the current year is still uncertain, with the company saying it could not give earnings guidance for the fiscal year.

“At present, there is very limited visibility regarding near-term volumes in Qube’s key markets. Qube presently expects that the generally weaker conditions it experienced in the second half of the 2020 financial year will continue in FY21 until the impact of COVID-19 subsides. As a result, Qube expects volumes in a number of its markets to decline in FY21 relative to FY20,” the company said.

“Qube’s underlying earnings in FY21 will therefore depend largely on the severity and duration of the impact of COVID-19 on the economy and Qube’s markets, and Qube’s ability to mitigate the impact through further cost initiatives, new revenue opportunities and accretive acquisitions and investment, as well as the timing of a general economic recovery.”

The company said its results included revenue of about $13.5m from the federal government’s JobKeeper scheme, which were used to “assist in ensuring that the regional and automotive port remained operational and job losses were minimised”.

Its 2.3c final dividend will pay about $43.3m out to Qube shareholders.

Qube also ran a $500m capital raising in May, and said on Monday its dividend reinvestment plan will be fully underwritten.

Qube shares closed down 7c, or 2.4 per cent, on Tuesday at $2.85.