Aurizon Holdings Ltd (ASX: AZJ) is a rail freight company. The Company provides coal, bulk and general freight haulage services, operating on the Central Queensland coal network (CQCN) and including specialised track maintenance and workshop support functions.
As per the financial report released for the 6 months ended 31 December 2018, the Board has declared an interim dividend for 1HFY2019 of 11.4cps (70% franked) based on a pay-out ratio of 100% in respect of underlying NPAT for continuing operations. The ex-dividend date for the dividend is 25 February 2019. While the record date for determining the eligibility of dividend payment shall be 26 February 2019, also the payment date shall be 25 March 2019.
IT decreased $79.3m or 16% due to reduced earnings in Network resulting from Aurizon’s decision to account for the UT5 Final Decision, including the acceleration of the total FY2018 true-up, in FY2019, and the June 2018 cessation of the Cliffs contract in Bulk. Earnings in Coal decreased with higher operating costs including maintenance expenditure and costs for installing capacity for future volume growth. The deterioration in Other EBIT was principally due to the inclusion of group-wide redundancy costs of $13.9m.
Group revenue decreased $109.9m or 7% impacted by the UT5 Final Decision in Network and the cessation of Cliffs in Bulk. The Operating costs decreased $37.3m or 5% largely due to lower track access costs offset in part by increased consumable costs
across Coal and Network. Depreciation has increased $6.7m or 3% in part because of additional rolling stock in Coal. The Return on invested capital (ROIC) has improved 0.4 ppt to 10.0% reflecting the impact of impairments taken in FY2018 reducing average invested capital.
For the half year period, the Net cash inflow from operating activities from continuing operations decreased by $41.3m (6%) to $659.6m primarily due to a significant final tax payment concerning FY2018 which includes tax paid in respect of the Acacia Ridge Terminal transaction. This will be refundable if the transaction does not proceed. This is partly offset by a net increase in cash flows from continuing operations due to receipt of the Cliffs termination payment ($66.3m excluding GST) in the period.
Now, let us have a quick look at Aurizon Holdings Ltd’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $4.44, trading up by 0.226% during the day with a market capitalisation of ~$8.82 Billion. The counter opened the day at $4.37, it touched a day’s high of $4.51 and touched the day’s low of $4.34 with a daily volume of 5,978,949. The stock has provided a YTD return of 4.48% & also posted returns of 4.48%, 4.73% & 1.84% over the past six months, three & one-months period respectively. It had a 52-week high price of $4.85 and touched 52 weeks low of $3.90, with an average volume of 9,714,996 approximately.
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