Industry News

Qube reports strong profit growth

Recent responses to the global health crisis and its subsequent economic impacts have proved to be sound decisions made by logistics powerhouse Qube.

The company has reported record underlying earnings with Net Profit After Taxation and Amortisation (NPATA) up 31 per cent which has resulted in shareholder dividends increasing by more than 15 per cent.

The key drivers of the growth in earnings were the Operating Division and the Patrick stevedoring business.

The Operating Division experienced high volumes across most parts of the business with container, forestry and bulk activities particularly strong.

Despite some disruptive industrial action, Patrick benefitted from high volumes and increases in landside and ancillary charges which, following similar increases from other port operators, created some controversy among sections of the road transport industry.

The Operating Division reported underlying revenue growth of around 12.5 per cent to $2 billion and underlying EBITA growth (Earnings Before Interest, Taxation and Amortisation) of 29.5 per cent to achieve around $212 million.

Qube has remained highly diversified by customer, product, service and geography.

In the 2021 financial year, the top ten customers across the division represented approximately 19 per cent of its total revenue and included mining companies, energy companies, shipping lines, retailers and manufacturers.

No single customer represented more than 2.5 per cent of the total divisional revenue.

The majority of the earnings growth in the Operating Division was attributable to logistics activities which benefitted from a much larger contribution from grain-related activities including bulk and containerised haulage, grain storage and loading.

“Qube responded to the global crisis with the health and safety of its people, customers and communities as the number one priority during the pandemic,” said Qube Chairman Allan Davies.

“The pandemic added more proof, if any more was needed, that the company’s diversified logistics strategy will underpin long term earnings growth.”

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