Truck tolls build Transurban interim profit rise


Half-year result sees profit up 42 per cent on previous first half

Truck tolls build Transurban interim profit rise
Transurban is doing well out of truck tolls

 

The firm that is increasingly becoming city trucking’s bete noir, toll road operator Transurban, has seen a significant input from trucks boost its interim results.

Its first half results show earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 12.1 per cent to $817 million, while total toll revenue rose 10.9 per cent to $1,065 billion.

Net profit was up 42 per cent to $88 million.

Road operating costs rose 12.2 per cent compared with the previous year’s first half, to $166 million and construction costs rose 156 per cent to $274 million.

In Sydney, it states that "large vehicle toll multipliers are now at three times cars on the Lane Cove Tunnel (LCT), M5 and Westlink M7".

For the second quarter, large vehicle average daily traffic (ADT) rose 2.6 per cent compare with 2.6 per cent for cars.

"Revenue on the M7 increased by 18.7% for the December quarter," the company reports.

"This was largely due to the increase in the large vehicle toll multiplier during the December quarter to 2.78 times the car toll.

"The multiplier reached 3 [sic] times the car toll on 1 January 2017."

For Melbourne, where toll revenue rose 2.7 per cent to $340 million, it notes the controversial hike on heavy vehicles and that of total ADT, car traffic decreased 3.5 per cent and large vehicle traffic increased 14.4 per cent for the quarter.

However, much of that increase was due to a vehicle classifications review that reclassified a number of cars as light commercial vehicles.  

In Brisbane, where toll revenue rose 31.6 per cent to $193 million, of total ADT, car traffic increased 20.2 per cent and large vehicle traffic increased 16.8 per cent, the latter excluding AirportlinkM7, car traffic increased 1.1 per cent and large vehicle traffic increased 5.1 per cent. 

CityLink remains the firm’s biggest provider of revenue, at $340 million for the half, more than double Sydney’s M2 at $138 million, itself about 40 per cent the next most productive asset, Sydney’s M7 at $98 million.

"We currently have a $9 billion pipeline of development projects, which are all on time and on budget," CEO Scott Charlton says.

"Our balance sheet has capacity to fund our development pipeline, with the Western Distributor the only project in our current pipeline potentially requiring additional equity post financial close."

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