Australian rail firm Aurizon has reported lower coal hauling volumes in 2022-23 because of prolonged wet weather, a major third-party derailment and production issues at some east coast mines it services.
Aurizon transported 185mn t of coal in the 2022-23 financial year to 30 June, 5pc down from volumes in the previous financial year, the company reported on 14 August.
Aurizon reported its coal earnings fell by 16pc to A$455mn ($294mn) while recording an underlying profit of A$367mn, 30pc lower than 2021-22's A$525mn.
Aurizon experienced significant disruptions in Queensland early this year as flooding affected the coal ports of Hay Point and Dalrymple Bay, while a January derailment interrupted deliveries to Gladstone harbour for a fortnight. The firm revised its coal haulage volumes down in February as a result.
"It was a challenging operating environment for the business in FY2023, with prolonged wet weather significantly impacting volumes and earnings," Aurizon chief executive Andrew Harding said. "We saw a 2pc uptick in coal and 9pc uptick in network volumes in the April-June quarter, which gives us confidence in an improved outlook for FY2024."
The firm expects its coal haulage business to increase by 10pc to 203.5mn t in 2023-24, while it continues to diversify with new bulk and containerised freight businesses following its 2022 acquisition of One Rail, saying non-coal revenue now comprises 45pc of non-network revenue.
Drier weather conditions expected for the remainder of this year are likely to raise coal production in eastern Australia, following a rare three straight years of wetter-than-average La Nina weather patterns.
During the 2023 financial year, Aurizon inked a 10-year contract with Australian coal firm Malabar Resources for its 3.5mn t/yr Maxwell mine and a five-year contract with New Wilkie Energy, which is planning to reopen the mothballed Wilkie Creek coal mine in Queensland. It also signed a five-year contract with Simec Mining for servicing its 3mn t/yr Tahmoor coal mine in August.
