K&S Corporation announces full year financial results

K&S Corporation increased its revenues for 2017 by 13.5% year-on-year (YoY) to $936.0m. External revenue compromised 91.3% ($854.6m) of total revenues. Growth was a result of increased revenue in all business segments: Australian Transport, Fuels and New Zealand Transport.

Australian Transport, K&S’s business for the provision of logistical services to customers within Australia, posted revenues of $704.2m, an increase of $62.2m (9.7%) in comparison to the previous year. The growth in Australia was aided by Western Australian resource business gaining momentum along with a new contract with Roy Hill and new mine developments. The closure of Aurizon’s intermodal business in December 2017 added $16.1m in receivables which was included in the company’s result. Operating profit after tax increased by 516.0% totalling $12.2m in 2017.

The Fuel business segment also grew in terms of revenue with sales rising to $186.0m, an increase of $47.2m (34.0%), from $138.8m of the previous year. This growth occurred despite on-going mine issues at Appin Colliery resulting in fluctuations in coal volumes for South32. This segment’s operating profit after tax rose to $2.9m, growth of $0.82m (39.7%) in comparison to the previous year.

Increases in volume and performance for New Zealand Transport resulted in revenue growing to $45.8m for 2017 which is a rise of $2.2m (5.0%) YoY. Operating profit after tax decreased for New Zealand Transport falling to $2.1m which was a decrease of 16.9% YoY.

Further factors affecting performance for K&S included reduced market demand in its chemical transport division, Chemtrans, lowering returns. Despite reduced agricultural demand, specialist aviation refuelling business Areo Refullers increased performance in combination with K&S Agencies.

K&S have said that they are continuing to concentrate on cost reduction strategies, property rationalism and operational efficiencies. This has resulted in EBIT rising by $15.4m (95.1%) to reach a total of $31.6m. Whilst operating profit after tax rose 163.1% to $17.1m in comparison to the previous year.

Source: K&S Corporation