Aurizon revises FY2017 guidance following Debbie


Share price down by over three per cent since last week

 

Aurizon has reduced its full-year guidance from $900-950 million to $800-850 million following operational disturbances caused by Cyclone Debbie.

After a trading halt on Tuesday, Aurizon board announced that the company would see pre-tax earnings down by $100-115 million in FY2017.

However, it expects to recover $70-80 million of that amount with the help of "regulatory processes" through the Queensland Competition Authority in the coming years.

The company estimates the repair bill to be in the range of $40-50 million of which up to $30 million is "classified as operating costs" that will affect the pre-tax earnings.

Three out of its four coal systems have reopened to coal trains and are operating under restricted conditions with reduced capacity.

As a result, its coal haulage guidance has been reduced by 12-14 tonnes to 190-200 million tonnes for FY2017.

Aurizon’s share price has slipped 3.4 per cent since Thursday from $5.29 to $5.11 yesterday.

Get daily updates on the industry by subscribing to the Fullyloaded newsletter, joining our brand new LinkedIn group or liking us on Facebook