The rail and logistics company reported broadly stable revenue and underlying earnings before interest, tax, depreciation and amortisation and its coal business showed a 4 per cent improvement as network tonnages increased.

But it was hit with a $49 million impact to its EBITDA because it had to recognise historical fees for the Wiggins Island Rail Project.

“In the one-off $49 million Wiggins Island Rail Project payment from last year’s result is excluded, group EBITDA in the first half would have increased 5 per cent and Aurizon Network EBITDA would have increased by 6 per cent,” the company said.

Underlying net profit after tax was $257 million, a 4 per cent fall on the same period last year.

Aurizon said the reduction in its dividend to 10.5 cents a share (95 per cent franked) was because it wanted to maintain its credit rating as it continued its takeover of One Rail, which should be completed this year.

Managing director Andrew Harding said despite the fall in earnings, the business was resilient.

“As an essential service we have been able to continue to operate the freight supply chains sustainably that are vital for our communities, farmers, manufacturers and the resource sector,” Harding said.

He said China’s trade embargo on Australian coal was likely to remain and although the coal sector was experiencing strong demand it would take time for the mines to ramp up production.

Aurizon maintained its EBITDA guidance for the year at Between $1.425 billion and $1.5 billion.