Chemicals and fertiliser manufacturer Incitec Pivot estimates the recent Queensland floods will cost it between $100 million and $120 million in lost earnings.
The ASX-listed company previously estimated it would lose $10 million in earnings a week after this year’s floods forced the closure of the rail line between Townsville and Phosphate Hill.
On Tuesday, Incitec Pivot said it had been advised that the rail line would reopen in late April or mid-May.
‘Based on the current advice provided by Queensland Rail, IPL estimates that the outage will give rise to aggregate lost earnings before interest and tax (EBIT) of approximately $100 million to $120 million,’ it said in a statement.
‘In calculating this estimate, IPL has assumed that when the rail line reopens, it will operate at a level sufficient to enable ongoing full production at Phosphate Hill, with the rail service supplemented by road transport as required.’
In the meantime, the company said it is transporting a limited amount of product to customers by road in an attempt to mitigate the effects of the rail closure.
Incitec Pivot shares fell by more than four per cent at the open but have recovered to $3.325 at 1111 AEDT, still 1.92 per cent lower for the day.