(Recasts, adds CEO quote and details)
SYDNEY, Feb 13 (Reuters) - Australian rail freight company Aurizon Holdings Ltd AZJ.AX on Monday pointed to potential future volume and growth opportunities as a result of rising coal prices after posting an 18 percent rise in half-year underlying profit.
The Brisbane-based company reported an underlying profit, excluding one-off items, of A$279 million ($214.22 million) for the six months to Dec. 31, up from A$237 million a year earlier due to cost cuts and higher revenue from its track business.
Aurizon, which makes most of its money hauling coal across 2,700 kilometres (1,700 miles) of rail in the northern state of Queensland, reiterated it expected to report earnings before interest and tax (EBIT) in the range of A$900 million and A$950 million for the full 2017 financial year. It reported underlying EBIT of A$488 million in the first half.
On a bottom-line basis, including impairment charges and redundancy costs announced last month, Aurizon reported a A$54 million net profit in the first half, up from a A$108 million loss a year earlier. Chief Executive Officer Andrew Harding said the company would benefit from rising prices for thermal and coking coal. "This is good news for our customers, for the industry and for Aurizon, and could present future volume and growth opportunities," he said in a statement.
The company said all coal and iron ore customers were estimated to have positive cash margins based on current prices.
Aurizon, which posted revenue declines for the past two financial years, said revenue rose by 1 percent in the first half. ($1 = 1.3024 Australian dollars)