FINANCIAL PERFORMANCE
Over the last year, we have increased
our focus on customer engagement,
improving business efficiency and
driving cost reductions to improve
financial returns and maintain rail’s
competitiveness. This saw our access
revenues increase by 8.5 percent from
$660 million to $716 million. Earnings
Before Interest, Tax, Depreciation,
Amortisation and Impairment (EBITDAI)
increased 20.5 percent from $336 million
to $405 million. Group Net Profit After Tax
was $163.6 million compared to a loss of
$202 million last year.
In line with the substantive completion
of the $7 billion investment program to
repair, upgrade and expand capacity on the
Hunter Valley and Interstate rail networks,
2013/14 marked the end of our agreed
dividend exemption period and a return to
Shareholder dividend payments. An interim
dividend of $36 million was paid in May
2014 in line with prior year expectations.
Total interest bearing debt of $916 million
was slightly lower than last year
($1,080 million) and the Group Debt /
Debt + Equity ratio also reduced from
23.8 percent to 20.4 percent. The
company completed a successful bank
debt refinancing in June 2014 which saw
the addition of two new counterparties,
reduced cost and improved terms.
DELIVERING ON OUR STRATEGY
This year saw the completion of an
almost $4 billion capital program that has
modernised the Interstate network. During
the year we completed:
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The transfer of operational control
of the Sydney Metropolitan Freight
Network, so that customers need
only deal with a single network owner
between the Port of Melbourne and
Port Botany
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A new passing lane north of Melbourne
to provide greater operational
flexibility for services operating
between Melbourne and Sydney
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•
A substantial component of the
Ballast Rehabilitation Program
between Melbourne and Sydney,
improving the reliability of our
Melbourne to Sydney corridor
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•
Centralised Train Control from
Coonamia to Tarcoola, allowing
customers to get their freight to
market more reliably and predictably
between the East Coast and Perth.
As this ‘build’ phase tapers, our sights
are firmly set on bringing more freight
onto rail through a focus on our
customer at every level and function of
our business.
The reason for this is simple and timely. For
us to grow as a business over the long-term
and achieve our vision of making rail the
number one mode of choice in Australia, we
first and foremost need to offer and deliver
reliable and competitive services and have
the required capacity available for growth;
but we also need to build a strong rail brand,
continue to make rail easier to use and
develop whole-of-supply chain solutions
with rail as a dominant component.
By getting this mix right, we create
an environment that enables more
freight owners to shift more by rail and
ultimately help our customers succeed.
In 2013 we conducted a customer
satisfaction survey and this gave us
greater insight into our customer
needs and perceptions. Pleasingly, this
customer survey (and our own internal
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