At the briefing, CFO Mr Paul Lewis said that the decline in margins was partly attributable to the business mix, such as lower margin energy contracts. Some driver unavailability in Western Australia also contributed but hopefully won't be repeated in the next year.
QUB is now a pure logistics company, as the property division has been folded in.
There are some small bolt-on acquisitions likely soon, but 'not material'.
It's in a strong financial position post-monetisation of Moorebank.
Capital management could include buybacks or other measures.
Good forward outlook including at 50 per cent owned Patrick's.
Answering questions, Mr Paul Digney CEO said that the overall result was not 'abnormally good', as while there was a huge increase in grain, there was lower forestry-related revenue in NZ and labour shortages in WA.
Fuel levies recover increased fuel costs but QUB's first preference is to sit down with customers.
COVID-19 has shown customers that having more services with the likes of QUB allows streamlining of services.
Re capital management 'up to $400 million', but QUB can't be much more specific. It will however be meaningful but will depend on the precise form adopted. More information in the near term.
COVID-19 levies were implemented on 1 January 2022 to recover additional labour costs such as from contractors. It's cost recovery. QUB will continue to assess.
Capital is not a constraint. It's about finding opportunities.
Re IMEX at Moorebank, there's some improvement. The volume in January 2022 was above 10000 TEU so it's improved but it needs to get to 300000-400000 TEUs per annum. This depends on progress with the facility and road pricing.
Regarding port (wharf) delays, QUB hopes to catch up somewhat but some delays are due to blue water shipping delays. 10 days' delay equals 60000 container lifts so 'you'll never catch up'.
Tax payable on the LOGOS sale will be about A$200 million, payable in December 2023.
There is the ability to have a look at increasing port tariffs but it's a commercial matter.
QUB Price at posting:
$2.93 Sentiment: Hold Disclosure: Held
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