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UPDATE 1-Australia's Aurizon slashes profit guidance, coal tonnage after cyclone

Published 18/04/2017, 02:10 pm
© Reuters.  UPDATE 1-Australia's Aurizon slashes profit guidance, coal tonnage after cyclone
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(Updates with Aurizon statement)

SYDNEY, April 18 (Reuters) - Australian coal railway line operator Aurizon Holdings Ltd AZJ.AX on Tuesday slashed its annual profit guidance by up to 16 percent and said as much as 21 million tonnes less coal would be carried to ports as a result of Cyclone Debbie.

The cyclone in the northern state of Queensland led to the temporary closure of four of Aurizon's haulage lines in the world's largest coking coal export region.

Three of the lines have reopened already. Goonyella, the largest in terms of export tonnage, is expected to open on April 26 - about 1-1/2 weeks ahead of an earlier forecast - though with speed restrictions and reduced capacity, Aurizon said. said its latest forecast for underlying earnings before interest and tax was for A$800 million ($605 million) to A$850 million for the year ending June 30, down from previous guidance of A$900 million to A$950 million before the cyclone. The lower guidance accounts for lost revenue and flood repair costs, it said.

Aurizon shares fell by as much as 4.5 percent on Tuesday after it exited a trading halt to disclose the revised forecast.

Aurizon's major customers include coal miners BHP Billiton BHP.AX BLT.L , Glencore PLC GLEN.L , Peabody Energy Corp BTU.N , Rio Tinto RIO.AX RIO.L and Anglo American PLC AAL.L .

Aurizon said it expected to haul between 12 million and 14 million tonnes less coal in the year to June 30 as a result of the cyclone. Overall tonnage for the year, including that hauled by other operators on Aurizon lines, is expected to fall by 19 million to 21 million tonnes.

($1 = 1.3231 Australian dollars)

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