REPORTING SEASON: Aurizon Holdings Limited (AZJ)

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Figure 1: Aurizon Holdings Limited 12 month chart

 

Aurizon Holdings (AZJ) Reports stronger NPAT and dividend for the year

– In FY15 Aurizon Holdings (AZJ), posted a slight decline in revenue but a solid 139% lift in statutory profit. It has been a big year for the transportation company following its restructure and retrenchment in FY14. The downturn in mining transport volumes led to $386Million in impairments.

– Aurizon’s above rail unit posted a strong result as the company worked on improving pricing for new and renewed contracts with clients. Its rail division posted steady volumes and lower fuel costs contributed to this result.

– AZJ’s share price has lifted 9.5% this year, as they have focused on cutting costs and diversifying business units. Aurizon saw a small rise in its earning margin due to these changes up to 25.7% and above their target of 25%. They expect its earning margin to hold at 27% in FY16 as they plan to find additional corporate cost savings of $43Million. Their CAPEX spend for FY15 was in line with forecasts at $1.1Billion and the company received a net benefit on the sale of Redbank to the value of $36Million

– Aurizon has forecast flat coal haulage volumes and lower iron ore volumes for FY16. Aurizon’s dividend payout ratio policy has been increased to 70-100%. AZJ will payout a 2H dividend of $0.139, it will be 30% franked after the last two dividends were unfranked.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,