Qube reports increased profits in half-year results

QUBE reported a 12% increase in profits to $57.8 million for the first half of the 2021 financial year. However, its revenue fell by 2% in the period to $939 million.

The company also said it would sell its interest in the Moorebank Logistics Park for about $1.65 billion. In late February, the company signed a non-binding commercial term sheet with Logos Property group for the sale. Qube is to retain ownership of and responsibility for the IMEX and interstate rail terminals at Mooerbank. Qube expects the sale to be finalised in the second half of the 2021 financial year.

Qube reported a “strong” result from the stevedore Patrick. Qube’s 50% interest in Patrick contributed $20.9 million underlying NPAT, an increase of 16.8% on the same period the previous year. These results were positive despite a reduction of about 5.6% in throughput volumes at Patrick’s terminals.

Qube credited its diversification strategy with achieving positive earnings despite the challenging pandemic environment.

Soon-to-retire managing director Maurice James said Qube saw a strong performance in the face of the unprecedented challenges of COVID-19.

“Qube is pleased to have reached commercial terms with LOGOS, who continue to recognise the high quality and significant strategic value of MLP [Moorebank Logistics Park]. The commercial terms are subject to entry into binding documentation and several conditions including FIRB and the Government owned Moorebank Intermodal Company’s approval,” Mr James said.

“The proposed transaction will allow Qube to realise a strong value for the MLP property assets and focus on growing its core logistics business, all while retaining exposure to long-term growth in container volumes at MLP through terminal and logistics activities.”

Mr James said the transaction de-risks delivering the Moorebank development and warehouse leasing and reduces Qube’s ongoing capex requirements.

“We look forward to forging a strong partnership with LOGOS at MLP and benefiting from its strong tenant relationships and specialist development expertise,” Mr James said.

“Combined with the Minto Properties transaction announced in 2020, Qube’s property monetisation process will deliver approximately $1.86 billion of gross proceeds, with Qube continuing to retain ownership of the strategic MLP intermodal terminals as well as the options over the Beveridge site.”