The Aurizon Holdings Ltd (ASX: AZJ) share price is worth watching today after the S&P/ASX 200 Index (INDEXASX: XJO) group's half-year results.
What did Aurizon report today?
Aurizon posted group earnings before interest and tax (EBIT) up 12% on the prior corresponding period (pcp) to $456 million. Statutory net profit after tax (NPAT) climbed 51% higher to $343 million while free cash flow jumped 26% on pcp to $465 million.
The Aurizon share price is on watch as the group has increased its buyback program by $100 million to $400 million. The group's dividend increased by 20% on pcp to 13.7 cents per share.
Aurizon had a big 6 months and secured key contract extensions which helped de-risk and extend its contract book. The ASX 50 rail freight group also had a focus on operational efficiencies during the first half of FY 2020.
The group reported first-half volumes were impacted by weaker coal prices and customer maintenance activities. Aurizon reported total revenue up 5% on pcp to $1,529 million during the half.
I'd also be keeping an eye on the Aurizon share price after the company reported a 19% surge in underlying earnings per share to 13.6 cents.
The group's Coal segment went largely sideways during the year with EBIT edging 2% lower to $206 million. Aurizon's Bulk segment increased revenue by 15% to $297 million and EBIT by 208% to $44 million.
It was a similar story for its Network business with revenue climbing 7% to $596 million and EBIT jumping 14% to $232 million.
How will the Aurizon share price react today?
It's worth keeping an eye on the Aurizon share price today following the half-year report. While the headline numbers have broadly trended upwards, investors could trade heavily in the $10 billion rail freight group when the market opens.
Aurizon did reaffirm its FY2020 EBIT guidance of $880 million to $930 million today while lowering capital expenditure (capex) guidance. The group expects capex to be $500 million to $530 million this financial year due to the timing of growth projects.
A legal and capital restructure review is underway at Aurizon while funding remains largely stable.
