Transurban report solid results ex-US but focus of capital spending remains DC

Transurban Group report toll revenues of $696m (A$774m @$A=90c), for their FY2010 (year to June 30) an increase of 6.8% on FY2009 after allowing for the end of their M4 concession in Sydney. The group reports EBITDA of $567m (A$630m) up 13% and cash flow of $312m (A$347m) up 32%. Profit declared was $54m (A$60m) v a small loss in FY2009.

All the Australian tollroads showed revenue growth. M2 Hills Motorway in Sydney saw the strongest growth - 13% to $128m (A$142m). M7 Westlink also in Sydney grew over 9% to $160m (A$178m).

The group's largest pike CityLink in the second city Melbourne saw revenues rise 9% to $350m (A$390m).

Two other tollroads in Sydney saw smaller increases in revenue -  just below and just above 4%.

Pocahontas Parkway in Richmond Virginia was the only toll property to show a decline in revenue - about 1% down to $14m (A$15.6m).

The Australian tollroads all had EBITDA margins of 71% to 92%, but the Virginia pike yielded just 42%.

see table nearby in $As

Transurban say: "Depressed economic conditions in the Richmond area contributed to the continued underperformance of traffic on Pocahontas 895, which fell 5.9% in the year ended 30 June 2010."

They are continuing work on an Richmond Airport Connector spur and installing a new toll system to improve the financial performance.

The group reduced operating costs overall by 1% during the year to $179m (A$199m) and made major major economies in overall corporate costs (down 11%) and business development costs (down 35%).

Northern Virginia

The company's major new construction is in Northern Virginia.

Active construction is under way on the VA/I-495 Capital Beltway in Northern Virginia where 4 toll lanes are being added to the existing 8 travel lanes between the Springfield Interchange and Tysons Corner. Their project for building toll lanes on VA/I-395/I-95 between the Pentagon and Fredericksburg VA is on hold due to litigation by Arlington County and some questions about its financial viability.

They say the $1.7b (A$1.9b) Beltway project is on track for completion late 2012 and: "The business case behind the Capital Beltway project remains strong with the corridor being one of the three most heavily congested roads in the US and economic conditions in Fairfax County remaining strong through the US recession."

release to Australian stock exchange on results:

http://www.tollroadsnews.com/sites/default/files/TUfy2010.pdf

TOLLROADSnews 2010-08-11