The company has a clear roadmap for
change and is well placed to take full
advantage of the opportunities that
will emerge in the rail sector as the
economy recovers.
By re-orienting our business to a
customer centred one, underpinned by
our people and an ongoing commitment
to safety, we will continue to grow
sustainably and build a strong business
that delivers value for our Shareholders,
customers and stakeholders.
There is a direct connection between our
delivery on Transformation and growing
rail’s volume and market share – this
is not only good for business and our
Shareholders, but also for our communities,
stakeholders and the environment.
In this year’s Budget, the Australian
Government advised it would undertake
a Scoping Study of ARTC. This study will
consider options for the future manage-
ment, operation and ownership of ARTC.
Our Board and Executive are working
cooperatively with our Shareholders in
supporting this process.
Financial Performance
Despite the difficult market conditions, our
earnings again reflect the solid credentials
of the business and our ability to deliver in
even the most trying fiscal conditions.
Iron ore and coal prices are subdued
and business confidence and consumer
spending has been lower than previous
years. There is lower economic activity
and less freight moving between our
major ports, capitals, regions and states
than had previously been anticipated.
This has required us to look closely
at the cost structure of our business
and we have responded strongly to
the challenge and this is reflected in
our results.
In financial year 2014-15 we recorded
revenue of $828.6 million, representing
7.2 percent growth on the year prior.
Earnings Before Interest, Tax,
Depreciation, Amortisation and
Impairment (EBITDAI) grew by 7.1 percent
and Net Profit After Tax (NPAT) before
dividend was $134.6 million. We paid
dividends totalling $57.4 million to our
Shareholders during the year.
Key contributors to the financial result
include the cessation of iron ore mine
operations in South Australia and weaker
consumer demand in Western Australia in
the aftermath of the mining boom. This
has resulted in lower freight volumes
across our Interstate network.
This has been offset by continued
strength in the Hunter Valley business
despite the slow-down in coal mine
expansion projects.
The Hunter Valley continued to grow,
with 159.7 million tonnes of export coal
transported to Newcastle, representing
an increase of 5 million tonnes on the
previous financial year.
While coal mining industry conditions
have remained challenging, producers
in the Gunnedah Basin have expanded
operations and commissioned new rail
infrastructure to cater for the new Maules
Creek mine. Our Hunter Valley team
worked closely on this project, resulting
in a construction time of less than twelve
months and operations commencing three
months ahead of schedule.
Savings have been realised by achieving
efficiencies in core expenditure areas of the
business including maintenance, vehicles,
administration and support services.
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