Asciano profit up, wins Bandanna job

JUST one day after reporting a 21.3% increase in net profit after tax but before non-controlling interests on the prior half year, Asciano announced it had won another coal job.
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Pacific National coal train.

Noel Dyson

The company’s Pacific National Coal haulage business has entered into a 15-year performance-based take or pay contract with Bandanna Energy subsidiary Springsure Creek Coal.

The contract covers the annual movement of up to 4 million tonnes of coal from the proposed Springsure Creek mine in Central Queensland.

That is expected to start in July 2014, in line with the start of operations at the Wiggins Island coal terminal Stage 1.

Pacific National Coal director David Irwin said the contract expanded the company’s operations in the Blackwater coal system and would require it to add another two diesel powered train sets.

On the financial front Asciano’s boosted qualified NPAT came on the back of double digit earnings before interest and tax growth across its three operating divisions. These divisions are Pacific National Coal, Pacific National Rail and Patricks.

The NPAT growth came in spite of a $12.1 million downturn in the contribution from “corporate” at the EBIT level due to a significant increase in the valuation of accruals relating to employee benefits and a 115.8% hike in tax expense.

Asciano chief executive officer John Mullen said the underlying positive momentum of the three business units came despite the sluggish economic conditions across Australia.

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