Trailer Magazine


Transurban reports $162M profit despite economic conditions

  • Posted on Tuesday 11th, February 2020.

Road operator company, Transurban, has confirmed a statutory profit of $162 million, with average daily traffic across its toll roads increasing by 2.3 per cent, according to 1H20 results.

In addition to successful project delivery over the past 18 months, Transurban CEO, Scott Charlton, said the company has been investing in organisational capability and enhancing its customer experience leaving it well positioned for emerging opportunities.

"We have realigned our leadership operating model, enhanced our capability and improved our systems and processes to ensure a scalable and efficient business that is positioned for success," he said.

"We are now seeing a significant number of opportunities emerge in our core markets and will move to take advantage of them, while maintaining our normal disciplined approach."

In Sydney, proportional toll revenue increased by 10.8 per cent to $569 million, while average daily traffic increased by 2.2 per cent to 839,000 trips, with growth impacted by softer economic conditions and weaker housing construction activity.

Charlton said Transurban development projects are progressing with commissioning works underway at both NorthConnex and the new M5 tunnels for expected completion in mid-2020.

"The M4-M5 Link currently has 26 road headers tunelling with over 1.7 million tonnes of soil excavated to date," he said. "During the period we also acquired the 34.62 per cent minority interests in the M5 West, taking Transurban's ownership to 100 per cent, with the integration program on track."

In Melbourne, proportional toll revenue increased by 3.7 per cent to $424 million. Average daily traffic increased by 1.1 per cent to 867,000 transactions, with growth, again, impacted by softer economic conditions and weaker housing construction activity.

"On the West Gate Tunnel Project, we are actively working with the D&C contractor and the State to resolve outstanding matters including those related to spoil management," said Charlton. Significant progress has been made on the West Gate Tunnel project with over 13 million hours worked to date and over 4,000 people working on the project."

In Brisbane, proportional toll revenue increased by 6.6 per cent to $217 million, with average daily traffic increasing by 3.6 per cent to 424,000 trips.

Meanwhile, in North America, proportional toll revenue increased by 16.2 per cent to $186 million; average daily traffic increased by 6.2 per cent to 156,000 trips.

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