KiwiRail, the unprofitable government-owned rail operator, reported a 6 per cent drop in first-half operating earnings on reduced freight volumes of coal, logs and dairy, and said it would still meet guidance for annual earnings to gain by almost a quarter.
Earnings before interest, tax, depreciation and amortisation fell to $35.1 million in the six months ended Dec. 31, from $37.3 million a year earlier, the Wellington-based company said in a statement. Sales rose 0.3 per cent to $366.6 million, while operating expenses increased 1 per cent to $331.5 million.
Including $11.4 million of writedowns to the value of interest rate swaps and foreign exchange positions, KiwiRail reported a net loss of $6.8 million in the first half, from a profit of $3.5 million a year earlier.
"Bulk freight was significantly affected by lower volumes of coal being transported in the South Island and the hot, dry summer which impacted on primary production," chairman John Spencer said. "Domestic freight revenue, however, increased on the back of the domestic economy and ongoing migration of road volumes to rail, with growth continuing from our partnerships with NZ freight forwarders in the development of intermodal hubbing points."
New Zealand's biggest ports are racing to tie up the nation's flow of freight, via inland hubs, alliances and partnerships with transport companies, which has included using capacity on KiwiRail's network.
