Heriot-Edievale.Com (Trading as Heriot-Edievale Limited)

Public Transport, Rail and Freight Advisory / Consultancy

The Transport / Rail Blog

Blog

KiwiRail Announces FY2012 Annual Result

Posted on August 31, 2012 at 12:04 AM
KiwiRail this week released their annual result for FY12.
 
As expected, and previously indicated by the company, they missed their 2013 SCI target EBITDA by $35 Million. Whilst dissapointing for the industry and observers this result was not unexpected and had been well signalled.
 
Also of note was the confirmation of the $7.1 Billion asset writedown on the balance sheet which was some $400 Million higher than previously estimated.
 
The press release is as follows:
 
 
KiwiRail’s growth continues with revenue increase of $50 million
 
29 August 2012

KiwiRail’s progress towards becoming a sustainable business is well underway reporting revenue growth of 7.2% or almost $50 million. This includes strong revenue growth from the freight business of 15%, or approximately $60 million, and an increase in their EBITDA of 14%.

However, the operating surplus before major one-off items, depreciation and grant income decreased by 2.6% to just under $105 million, due to trading and operating challenges in other parts of the business.
 
According to Chairman, John Spencer, the positive freight result despite continuing difficult trading conditions gives a level of confidence that the objectives of the ten year strategic plan can be achieved.
 
“Freight growth is essential to achieving our long term plan objectives and for revenue to increase to $457 million, despite flat economic conditions, shows that our focus on this business as the foundation for the future sustainability of KiwiRail is well founded,” said Mr Spencer.
 
“Over the last three years freight revenue growth has increased by 25%, particularly due to the growth in the import export and bulk freight businesses.”
 
“We have commissioned new locomotives and wagons and without these we would not have achieved freight growth and met increasing customer demand.”
 
The commissioning has taken longer than planned, however new rolling stock are quickly becoming the workhorses of our freight fleet.
 
”But other parts of KiwiRail have continued to be affected by the on-going impact of the Christchurch earthquakes and flat domestic activity."
 
“The Scenic passenger business has experienced significant declines in passenger numbers due to the Christchurch earthquakes and the fall in tourism. For example the number of passengers travelling on the TranzAlpine service has declined 23%, with the overall decline across all services being 14%,” said Mr Spencer.
 
“The Interislander business has also been affected by lower domestic tourism and freight. Combined with the additional planned costs for the Aratere extension this has meant a reduction in their operating surplus of $4.7 million compared to last financial year.
 
”Impacting on the company’s operating costs were two major one off items; a $11.8 million write-down of inventory related to the balance sheet restructure announced in June and a restructuring provision of $15.6 million for the Infrastructure and Engineering (I&E) division."
 
“The decision to restructure the I&E division resulting in the disestablishment of 181 positions was a difficult one to make, but we have made a commitment to deliver a sustainable company by 2020 and it is essential that we keep our investment plan in line with our earnings in these challenging times.”
 
“While these changes will mean we spend less than originally planned upgrading the rail network nationally over the next three years we will still be investing $750 million, or four times the amount spent a decade ago.”
 
“The hundreds of millions spent already have led to an improvement in reliability and a reduction in transit times and network caused delays, such as maintaining a ten year low in mainline derailments."
 
In June this year KiwiRail also announced their Balance Sheet Restructure which will result in the establishment of a new SOE scheduled for early January 2013. As part of this process a revaluation of the company’s assets on a commercial basis was undertaken. This has resulted in a reduction of $7.1 billion in the value of the company’s fixed assets and an impairment of $2.2 billion in the financial statements.
 
“In addition to the fixed assets, our land assets were also revalued resulting in a reduction of $2.4 billion. This, and $4.9 billion for the other fixed assets, was covered by revaluation reserves."
 
Mr Spencer said while the year’s performance was positive, the overall results were below the Statement of Corporate Intent (SCI) targets.
 
Operating revenue was $21 million short of the $737 million SCI target, with an EBITDA shortfall of $35 million.
 
“The key reason for this shortfall is due to the Passenger and Interislander business results previously mentioned,” said Mr Spencer.
 
“But we are pleased to report that the freight business revenue result exceeded their SCI target.” Mr Spencer said some hard decisions will continue to be made over the next year if the company is to achieve its 2012-13 revenue and EBITDA targets.
 
“KiwiRail will continue its focus on reducing costs, lifting efficiency and better managing infrastructure spending so that the expected earnings are delivered.”
 
“We have publicly stated that if there are parts of the business not performing this has to be addressed.”
 
“No one will thank us if we can’t make this company sustainable and making a real contribution to the country’s economy. We are committed to keeping our promise to our shareholder and the taxpayers of New Zealand that KiwiRail will be able to stand on its own."
 
Continuous disclosure
 
KiwiRail’s financial results for the twelve months ended 30 June 2012 are released today in accordance with the company’s continuous disclosure policy - consistent with the Government’s Continuous Disclosure Rules for State Owned Enterprises which came into effect from 1 January 2010.
 
KiwiRail’s full year accounts will be published when they are tabled in Parliament.
 
ENDS

Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

410 Comments

Reply kd 12
6:28 AM on January 12, 2022 
I simply wanted to appreciate you all over again. I am not sure the things that I could possibly have taken care of without the actual secrets discussed by you relating to that concern. It seemed to be an absolute troublesome dilemma in my position, but coming across the skilled form you managed it made me to leap over joy. I am just thankful for this advice and even pray you know what a great job you have been getting into educating other individuals using your blog post. I know that you haven't met any of us.
kd 12 http://www.kd12.org
Reply nike dunks
6:31 AM on January 12, 2022 
I really wanted to jot down a small note in order to thank you for all of the nice tricks you are giving out at this website. My considerable internet lookup has now been paid with excellent suggestions to go over with my great friends. I 'd declare that most of us visitors are very much fortunate to dwell in a wonderful site with very many perfect individuals with very helpful pointers. I feel very fortunate to have used the web site and look forward to plenty of more awesome moments reading here. Thank you once again for a lot of things.
nike dunks http://www.sbdunk.us
Reply pg 1
5:30 AM on January 13, 2022 
I enjoy you because of all of your hard work on this web site. Debby really likes conducting research and it's really easy to understand why. I notice all of the lively means you render priceless thoughts by means of your website and as well cause response from other individuals on that subject so my child is actually being taught a lot. Enjoy the rest of the year. Your carrying out a dazzling job.
pg 1 http://www.paulgeorge.us.com
Reply yeezy 350
4:23 PM on January 13, 2022 
I really wanted to jot down a small message in order to appreciate you for some of the precious items you are sharing on this website. My time intensive internet research has now been paid with wonderful tips to talk about with my relatives. I would claim that most of us visitors are very much endowed to be in a very good website with very many wonderful professionals with good guidelines. I feel pretty grateful to have encountered your web page and look forward to so many more fun times reading here. Thank you again for a lot of things.
yeezy 350 http://www.yeezy350s.com
Reply yeezy shoes
2:49 PM on January 14, 2022 
Thanks so much for providing individuals with an extraordinarily marvellous possiblity to check tips from this web site. It's usually so pleasing and also jam-packed with amusement for me and my office acquaintances to search your website minimum 3 times per week to study the newest guidance you will have. And of course, we're certainly impressed with the powerful techniques you give. Selected 1 areas in this post are absolutely the most impressive we have all ever had.
yeezy shoes http://www.yeezy-sneakers.us
Reply kd shoes
11:30 PM on January 14, 2022 
I enjoy you because of all of your labor on this website. Kim really likes engaging in investigations and it's easy to see why. A number of us know all about the compelling method you create good tips on your blog and as well as increase contribution from other ones on the theme plus our favorite daughter is without a doubt becoming educated so much. Take pleasure in the remaining portion of the year. You are performing a really great job.
kd shoes http://www.kd-shoes.us
Reply kd12
10:37 PM on January 15, 2022 
I actually wanted to make a brief word to say thanks to you for those lovely hints you are sharing on this website. My incredibly long internet investigation has at the end been rewarded with awesome content to talk about with my family. I 'd point out that we website visitors actually are definitely fortunate to be in a perfect community with so many wonderful people with great techniques. I feel pretty happy to have encountered your site and look forward to so many more fabulous moments reading here. Thanks again for everything.
kd12 http://www.kd12.org
Reply hermes birkin
11:42 PM on January 17, 2022 
I have to show my gratitude for your kind-heartedness in support of men and women that absolutely need help on your topic. Your special commitment to getting the message across turned out to be really practical and has specifically made somebody like me to attain their desired goals. Your personal helpful key points denotes a great deal a person like me and extremely more to my peers. With thanks; from each one of us.
hermes birkin http://www.hermesbirkinbags.us.com
Reply moncler
11:45 PM on January 17, 2022 
I together with my guys appeared to be checking out the great suggestions from the blog while immediately came up with a horrible suspicion I never thanked the website owner for those secrets. Those women ended up consequently warmed to read them and now have really been using those things. I appreciate you for genuinely indeed kind as well as for obtaining varieties of incredibly good subjects most people are really desperate to discover. Our honest apologies for not expressing appreciation to sooner.
moncler http://www.monclercoat.us.com
Reply yeezy boost 350
7:39 AM on January 19, 2022 
I'm also writing to let you understand of the perfect experience my daughter gained reading through yuor web blog. She figured out several things, most notably what it is like to have an excellent giving mindset to have many others easily learn about specified hard to do issues. You undoubtedly surpassed readers' expected results. Thanks for giving those useful, trustworthy, explanatory and easy guidance on that topic to Emily.
yeezy boost 350 http://www.yeezy-shoes.us.org
Reply kawhi leonard shoes
5:48 PM on January 19, 2022 
I simply wanted to appreciate you once more. I am not sure the things I would have sorted out in the absence of the suggestions revealed by you over my field. It truly was a very terrifying issue for me, however , viewing a new skilled technique you managed it took me to leap for contentment. Now i am thankful for the advice and believe you find out what an amazing job that you are doing teaching other individuals through a web site. I am certain you've never met all of us.
kawhi leonard shoes http://www.kawhileonardshoes.us
Reply lebron shoes
5:49 PM on January 19, 2022 
Needed to put you the very little observation to help say thanks a lot over again just for the beautiful advice you've shared on this site. This has been strangely generous of you to deliver without restraint precisely what a few individuals might have sold as an e-book in order to make some money for themselves, and in particular considering the fact that you could have done it if you ever desired. These good ideas in addition served like the great way to be certain that other people have the same passion much like my personal own to figure out more with regard to this issue. I am sure there are lots of more pleasant times up front for many who view your site.
lebron shoes http://www.lebronjames-shoes.us.com
Reply supreme hoodie
5:49 PM on January 19, 2022 
My husband and i ended up being now delighted that Ervin could deal with his basic research with the ideas he discovered using your blog. It's not at all simplistic just to be releasing key points which most people have been selling. We really understand we've got the blog owner to appreciate for this. The entire illustrations you've made, the easy website navigation, the relationships you can help to engender - it is mostly astounding, and it's really helping our son and the family believe that this matter is exciting, which is particularly mandatory. Many thanks for all!
supreme hoodie http://www.supremeshoodie.com
Reply birkin bag
3:22 PM on January 20, 2022 
I and my guys have already been following the great guides found on your website and then all of a sudden I had a horrible feeling I had not thanked the web blog owner for those strategies. Most of the people were definitely as a result happy to read them and have really been taking advantage of those things. Many thanks for getting really thoughtful and also for deciding upon certain impressive subject matter most people are really desperate to be aware of. My honest apologies for not expressing appreciation to earlier.
birkin bag http://www.birkinbag.us.com
Reply cheap jordans
3:24 PM on January 20, 2022 
I must express my appreciation to you just for rescuing me from such a difficulty. Just after looking through the internet and meeting methods which are not helpful, I believed my life was gone. Being alive minus the solutions to the issues you have sorted out through your entire posting is a critical case, and those which may have badly affected my career if I hadn't discovered your web page. Your own personal competence and kindness in handling a lot of stuff was important. I am not sure what I would have done if I hadn't come across such a thing like this. It's possible to at this time look ahead to my future. Thanks very much for this skilled and result oriented help. I won't think twice to suggest your blog post to anyone who should have assistance about this matter.
cheap jordans http://www.jordansforcheap.us.com
Reply yeezy 350
3:24 PM on January 20, 2022 
A lot of thanks for your entire labor on this site. My mother really loves engaging in investigation and it is obvious why. A lot of people notice all about the compelling mode you make great tactics on this web blog and in addition attract response from some other people on that subject plus my girl is now understanding a lot. Take advantage of the rest of the year. You're performing a useful job.
yeezy 350 http://www.yeezy350v2s.com
Reply nike kyrie 5
11:04 AM on January 22, 2022 
I in addition to my guys have been checking out the excellent tricks on your site while then got a horrible suspicion I never expressed respect to the web site owner for those techniques. All the young men happened to be as a consequence happy to learn all of them and now have in actuality been making the most of these things. Many thanks for actually being so considerate and then for getting certain excellent issues millions of individuals are really desirous to be aware of. Our honest apologies for not expressing appreciation to you sooner.
nike kyrie 5 http://www.kyrie5.org
Reply supreme outlet
11:04 AM on January 22, 2022 
I have to express appreciation to you just for rescuing me from this setting. After browsing throughout the internet and finding advice that were not powerful, I was thinking my life was well over. Living devoid of the strategies to the difficulties you've sorted out all through your entire blog post is a critical case, and the kind which might have adversely damaged my career if I hadn't come across your web page. Your own competence and kindness in playing with all areas was useful. I'm not sure what I would've done if I had not encountered such a step like this. I'm able to at this point look forward to my future. Thank you so much for your professional and effective guide. I will not be reluctant to recommend your web page to anyone who needs and wants tips on this matter.
supreme outlet http://www.supreme.us.org
Reply moncler
11:05 AM on January 22, 2022 
I am writing to let you know what a incredible encounter my daughter went through checking yuor web blog. She came to understand some details, most notably how it is like to possess an ideal teaching nature to let most people smoothly know certain tricky things. You truly did more than our expected results. Thanks for displaying these good, safe, explanatory and in addition easy guidance on this topic to Sandra.
moncler http://www.moncler--outlet.us.com
Reply golden goose
11:05 AM on January 22, 2022 
I want to show thanks to this writer just for rescuing me from this predicament. Right after looking throughout the the net and getting concepts which are not beneficial, I assumed my entire life was gone. Existing devoid of the answers to the problems you've resolved as a result of your good short post is a crucial case, and ones that would have negatively affected my entire career if I had not encountered your website. Your own personal competence and kindness in taking care of all the details was invaluable. I'm not sure what I would have done if I had not come upon such a subject like this. It's possible to at this moment relish my future. Thanks for your time so much for the high quality and sensible guide. I will not think twice to recommend your blog to any individual who ought to have guidelines about this issue.
golden goose http://www.goldengoosesneakers.us.com