Stevedore's performance lauded at AGM as Moorebank project rolls on
Logistics giant Qube’s “long-term strategy of diversification of activities and locations” holds it in good stead, says chairman Allan Davies at the company’s annual general meeting (AGM), held recently.
In particular, he lauds the first full-year contribution from Patrick, of which it is a 50 per cent joint venture partner, delivering a $61.6 million cash distribution and a special dividend to shareholders.
“Financially, 2018 was another successful year for Qube with increased earnings and a strong contribution from the company’s investment in Patrick allowing the board to declare a special dividend for shareholders,” Davies says.
Other key developments in the past year include:
- Positive pre-tax revaluations of around 35 per cent for its investment properties at Minto and Moorebank
- Record performance from ports activities supported by solid earnings contribution and cashflow from Australian Amalgamated Terminals (AAT) under 100 per cent Qube ownership
- Considerable interest in Moorebank Logistics Park (MLP) leasing and development opportunities with construction of rail link, import-export (IMEX) terminal and new warehousing underway
- The completion in December 2017 of the acquisition of Maritime Container Services (MCS) container park business in New South Wales, with synergies expected to flow in FY19.
- A further 67 per cent improvement in the lost time injury frequency rate from an already low base
- A strong balance sheet with diversified funding sources and a leverage ratio below the bottom end of a long-term target leverage ratio of 30-40 per cent.
Qube annual profits rocket more than 150 per cent. Read more, here
Looking ahead to 2019, it expects “continued benefit from diversification of activities enabling overall growth despite some challenges.”
Qube says it forecasts strong growth in its ports activities and modest growth in earnings from bulk activities, with similar conditions and volumes across most of its activities including containerised transport, bulk commodities and forestry products, softness in grain, and a modest decline in imported vehicle volumes.
Market growth for Patrick continues to trend above long-term expectations (around 6 per cent).
A focus on ensuring successful delivery of projects such as Moorebank is one of the company’s focuses in the coming year, with construction in south-western Sydney progressing. The first-quarter update notes “pleasing earnings contribution from rental income, management fees and ancillary income”, with a large capacity for future warehouse and interstate terminal construction.
Meanwhile, Qube also proceeded with the automation process of the IMEX rail terminal, with Kalmar Global appointed to deliver the equipment and associated operating systems – to progressively starting late 2019 and a staged set up to be completed by 2022.