SYDNEY, Dec 23 (Reuters) - Shares in Aurizon Holdings Ltd AZJ.AX were hammered after the commodity rail carrier company lowered its haulage guidance and said it would take a half-year pre-tax impairment of up to A$240 million ($173.47 million).
The stock tumbled more than 15 percent to A$4.14 after Aurizon said it now expected rail coal haulage volumes of between only 202 million and 212 million tonnes, a 3-4 percent reduction in guidance. The stock has dropped by 25 percent since Nov. 27 as investors concerns mount over deteriorating commodities markets.
"Given the current market conditions for our coal customers, there is a higher level of uncertainty over second-half volumes than in recent years," the company said.
It also confirmed that preliminary work on its West Pilbara Iron Ore mining and transport project was being put on hold by agreement among the partners because of a weak market outlook.
Aurizon said it was considering the implications of this decision, given its capitalised value of its investment in the project of A$91 million.
Aurizon invested in the West Pilbara Iron Ore project last year with China's Baosteel Resources, South Korean steel maker POSCO 005490.KS and commodities investor AMCI, before iron ore prices plunged. It is also looking to build a rail line for Indian group GVK's Alpha coal project, also on hold.
On a broader scale, Aurizon has undertaken a review of the carrying value of its assets, leading to an impairment charge in the range of $215-240 million before tax for the half-year to end-December.
The impairment did not take into account any potential impairment arising from the West Pilbara Iron Ore Project, the company said.
($1 = 1.3835 Australian dollars)