Trailer Magazine


Qube maintains strong market positions with diversification strategy

  • Posted on Monday 25th, February 2019.

Logistics company, Qube, has announced a solid financial performance for the six months to 31 December 2018 with a return to underlying earnings per share growth.

Highlights for the period include: solid growth in underlying earnings per share driven by improved earnings from all of Qube’s divisions, associates; continued positive financial and operational results from Patrick with increased earnings and market share, and “pleasing” progress with key lease extensions and the Port of Botany automation project; sound progress in relation to the planning, development and leasing activities at Qube’s Moorebank Logistics Park; a strong balance sheet and liquidity maintained with the overall weighted average maturity of Qube’s debt facilities extended and debt facilities increased; and interim dividend increased by 3.7 per cent to 2.8 cents per share and special dividend of 1.0 cent per cent (both fully franked).

“This is a very solid first half result which again highlights Qube’s strong market positions and the importance of our diversification strategy,” said Qube Managing Director, Maurice James.

“Qube was able to deliver very strong earnings growth despite challenges in some parts of the business including declining motor vehicle volumes and the ongoing effect of the drought,” he said.

According to Qube, Patrick continued to generate high cashflow in the period, distributing $40 million to Qube in the six months to December 2018 as a result of higher container volumes and increased market share.

The cash distributed to Qube was reportedly significantly above Qube’s corresponding share of Patrick’s underlying profit in the period (NPATA) which increased by 15.1 per cent to $19.1 million.

As a result of the solid financial results, high cashflow generation and positive outlook, the Board has resolved to increase the interim dividend by 3.7 per cent to 2.8 cents per share and to pay a special dividend of 1.0 cent per share, both fully franked.

Qube said it also made sound progress in the period with its strategic Moorebank Logistics Park development. “The Moorebank development is progressing in accordance with Qube’s internal targets and rail operations remain on schedule to commence in Q3 calendar 2019, with the construction of the Target warehouse to be complete prior to this date. This assumes that there are no further delays in the planning process or receiving the outstanding approvals.”

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