KiwiRail had a much better 12 months to June 30 than a year earlier, improving its earnings before interest, tax, depreciation and asset impairments to $91 million, 17 per cent ahead of the previous financial year, which was marred by several one-off costs.
The result was achieved on total revenues of $721 million, down 3 per cent for the year, with freight revenues falling 6 per cent to $434 million in an environment where coal deliveries by Solid Energy fell, offset somewhat by higher levels of dairy production.
The forestry, import/export and domestic freight categories together performed slightly ahead of last year.
For the year ahead, chief executive Peter Reidy told BusinessDesk the state-owned rail business expected "volatile trading conditions', with Solid Energy recently placed into voluntary administration and a sharp downturn in dairy prices expected to lead a reduction in milk solids production in the current season.