Atlas Arteria Provided Update On Dulles Greenway

ALX

On 5 December 2018, the global infrastructure developer and operator Atlas Arteria (ASX: ALX) provided an update on Dulles Greenway which is a privately owned 14-mile toll road.  Atlas Arteria portfolio includes four roads – APPR, ADELAC, Greenway, and Warnow. The chairman of Toll road investors partnership II, L.P. (TRIP II) Mr. E Thomas Sines issued a statement on 4 December 2018 regarding the announcement that TRIP II and elected officials are negotiating a distance-based pricing option for the Dulles Greenway.  According to Mr. Thomas Sines, TRIP II might provide toll relief to drivers using the Greenway during off-peak hours, while putting in place regulatory certainty which will enable it to make the sizable investments in infrastructure and tolling systems improvements required for distance-based tolling. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Recently Atlas announced that Magellan Financial Group Limited has become a substantial holder of the company by holding 34,214,121 securities with 5.01% voting power.  In the month of November, APRR issued EUR500 million of bonds under its Euro Medium Term Note program. The bonds were issued at 99.027 percent of par with a coupon of 1.50 percent and a maturity of January 2030. This represents a margin of 53bps over mid-rate swap.

Recently the company also announced that APRR and AREA have received approval from the French State to formalize a capital investment plan by way of amendments to their respective concession contracts. The capital investment plan of the company is having a total value of €187mn and it consists of 12 projects including new or improved motorway exchanges, environmental protection developments, as well as customer service improvements.

In the September quarter, the company reported that the weighted average toll revenue of the company increased by 3.4% on the prior corresponding period. Further, the traffic in the September quarter increased by 0.9% as compared to the previous corresponding period. The company believes that performance during the September quarter was negatively impacted by calendar effects and high fuel prices, with diesel prices, in particular, increasing by over 20% on pcp.

Dulles Greenway’s traffic performance during the September quarter was negatively impacted by improvements in the competing networks which have provided congestion relief on the routes. Average daily toll revenue for the September 2018 quarter decreased by 2.0% as compared to the previous corresponding period. Further, due to the temporary maintenance activities on competing routes, the traffic performance in the September quarter was positively impacted.

In the first half of FY 2018, the company reported the revenue and other income from operations of $59.6 million. Further, the company incurred a loss after income tax of $15.5 million. The Operating expenses of the company were $144.1 million in H1 2018.

In the last three months, the share price of the company decreased by 3.09 percent as on 4 December 2018. ALX’s shares traded at $6.590 with a market capitalization of circa $4.5 billion as on 5 December 2018 (AEST 4:00 PM).


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