The Australian Rail Track Corporation revealed that the resulting rail damage took the Hunter Valley coal network offline for nine days and will cost the North Coast freight line 19 days’ worth of operations.
According to Macquarie Wealth Management estimates, the earnings before interest and tax hit to Asciano subsidiary Pacific National will be $9 million.
The broker has maintained its outperform rating on Asciano and flagged cutbacks at Pacific National.
“While the volume environment remains subdued, attention will turn to additional cost outs in the Pacific National business and, importantly, capital management in the form of a revised dividend payout ratio,” Macquarie said.
