Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: With regards to your resources exposure, is there any impact from the weather events of Cyclone Zita in the Pilbara? A: There is some impact, but not material. We lost a couple of days of work in some operations in the Pilbara. We're still assessing, but we don't forecast them to be material impacts. Operations at the ports are back up and running now. - Unidentified_1
Q: In terms of grain handling and trading, what's the grain terminal capacity or utilization delivered in the half, and how should we model this going forward? A: We did 1.2 million tons combined with the two terminals in the first half and will do a larger volume in the second half. A couple of years ago, we did over 3 million for the full year, and the expectation is that the terminals can handle high volumes. - Unidentified_1 and Unidentified_2
Q: Regarding Patrick's, you've highlighted a $60 million distribution in cash flow. How has that distribution come through, given the profit from Patrick's? A: We anticipate that shareholder loans will probably get almost fully repaid later in the year. The distribution has mostly come through as frank dividends. - Unidentified_2
Q: With the additional $600 million liquidity, is there anything on the radar from an M&A perspective? A: We're still working through the acquisition and have a healthy pipeline of opportunities, but nothing significant to disclose at the moment. - Unidentified_1
Q: Can you provide more details on the energy results, particularly if it's from renewables or oil and gas? A: It's a combination. We're seeing existing scope from oil and gas customers, including decommissioning, and some work in renewables, especially onshore wind farms. The team has done a good job with existing and new customers. - Unidentified_1
Q: How should we think about the interaction of your new grain trading operation and agriculture business? A: Overall, we take a conservative approach on grain trading, covering trade through cost of capital. The margins for logistics activities are appropriate, benefiting from asset utilization. - Unidentified_1
Q: Can you talk about Patrick's performance in the first half of 2025 and the sustainability of ancillary fee contributions? A: Patrick's result was slightly better than expected due to stronger market conditions and a better quality of revenue mix. The business is tracking well with secured contracts. The valuation presented is based on Patrick's management's DCF model. - Unidentified_1
Q: Can you explain the logistics EBITDA margin changes, excluding grain, which declined by about 160 basis points? A: The key driver is the downturn in the automotive business, which had high volumes and margins in the prior year. The impact is mainly from industrial relations issues in terminals. - Unidentified_1
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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