New KiwiRail locomotives arriving at the Port of Tauranga last month. Net profits at KiwiRail fell 83 per cent in the past 12 months. Photo / Sam Ackland.
KiwiRail, the state-owned railway, lifted operating revenue on improvements in freight, the Interislander and network, while net profit tumbled as grant income fell and it transferred Wellington commuter assets to the local council.
Net profit fell 83 per cent to $34 million as the railway recognised a loss on the
transfer of assets to Greater Wellington Regional Council and recorded a decline in grant income that reflected completion of projects. Operating revenue climbed 2.6 per cent to $667.4 million.
The operating surplus excluding grant income and depreciation rose 29 per cent to $100.3 million. This marks the first year that KiwiRail hasn't received an annual $90 million operating grant from the government. Instead it receives funding for specific projects.
Recent developments have included the Wellington Regional Rail Plan and Auckland's metro rail and funding rolls off as projects are completed. In the latest year, grant income fell 24 per cent to $344.6 million.
The annual results come in below the targets set in the railroad company's statement of corporate intent. Operating revenue came in 2.6 per cent under the projected $685 million, while ebitda fell short by about $20 million.
