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Jun 03, 2020

Aurizon earnings expected to escape COVID-19 bite

Aurizon earnings expected to escape COVID-19 bite

Rail freight operator Aurizon has refinanced $1.3 billion in debt, adding an extra $420 million to its previous level, while reiterating its expected earnings for this financial year.

Managing director and chief executive officer Andrew Harding said operations across Aurizon’s s coal, bulk and network businesses had continued with minimal disruptions during the COVID-19 pandemic.

“As an essential transport provider to the Australian economy we have provided safe, reliable services to our customers and continued to support regional communities where our people live and work,” he said

“While the COVID-19 pandemic has had some impact to coal demand in Asia and on the Indian sub-continent, it has not been material to date to volumes and the company’s earnings.”

Aurizon’s earnings before interest and tax are forecast at $880-930 million-for FY 2020.

The refinancing deal will mean Aurizon will have more than $1.1 billion in liquidity and no further refinancing requirements until 2023.

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