Transurban (TCL) has boosted guidance for its 2015-16 distribution as strong revenues from toll roads helped the company report a first-half net profit of $81 million.
But its proportionate earnings before interest, taxation, depreciation and amortisation (EBITDA), excluding significant items, rose 15% to $729 million.
The group’s latest profit can’t be compared to the result in the first half of 2014-15 because the $354 million loss was due to the added costs of buying Queensland Motorways in Brisbane.
Revenues jumped 9.5% to $1.056 billion, aided by a rise in the average number of vehicles using its toll roads each day. But the company said proportional earnings before interest, tax, depreciation, amortisation and significant items rose 15% to $729 million for the half year.
Proportionate EBITDA measures income based on Transurban’s ownership stakes in its various toll roads in Australia and the US and is more closely watched by analysts than the normal profit.
As a result the road operator said it had increased guidance for its full-year dividend to 45.5 cents from 44.5 cents. It will pay a first-half dividend of 22.5 cents.
Transurban said the first-half result was helped by strong revenue growth from its Australian roads and rising traffic levels on the recently constructed 95 Express Lanes in North Virginia in the US. Transurban securities rose 0.7% to $10.83.
CEO Scott Charlton said the group had seen strong demand for its toll roads in Sydney and Melbourne, but that the Brisbane market had been softer.
The company owns and operates six toll roads in Queensland, including three adjacent to the AirportlinkM7. It owns five other toll roads in Australia and two in the US. It dominates the Sydney toll road system as well as Melbourne’s.
