Tolls road operator Atlas Arteria (ASX: ALX) today revealed its September quarter revenue along with traffic statistics and APRR/AREA update for the period.
For the third quarter ended 30 September 2018, the weighted average toll revenue and traffic recorded by the company has increased by 3.4% and 0.9%, respectively, on the prior corresponding period (pcp). This reflects the improvement in traffic level at APRR, ADELAC and specially at Warnow Tunnel with 11.4% increase which was partially utilized to offset the decline of 4.7% at Dulles Greenway.
Atlas Arteria has successfully finalized the concession contracts amendments for APRR and AREA through a capital investment plan, subject to French State approval.
ALX’s capital investment plan has a total value of ~€187 million, consisting of 12 projects including new or improved motorway exchanges, environmental protection developments, as well as customer service improvements at 2,318 kilometres motorway network located in the east of France, APRR. The additional capital will generate 0.198% more toll revenue per annum at APRR and 0.389% per annum at AREA over 2019-2021.
APRR in which Atlas Arteria holds 25% interest has shown total traffic increase of 1.3% in September 2018 quarter compared to previous corresponding period. This has led to 3.9% increase in toll revenue to €702.0 million, reflecting higher traffic mix, toll increase both at APRR and AREA; and light vehicle as well as heavy vehicle traffic increase.
ADELAC’s average daily traffic increased by 1.3% to 31,644 in September 2018 quarter, thereby generating 3.4% higher toll revenue of €165,846. The company holds 25.03% in ADELAC, a concessionaire of the A41 motorway connecting road between Annecy in eastern France and Geneva in Switzerland.
Dulles Greenway located in Virginia, United Stated is completely held by the company indirectly through 100% stakes in Dulles concession owner, Toll Road Investors Partnership II. As anticipated by the company Dulles performance has been downgraded compared to previous corresponding year but the rate of decline has shown slight improvement compared to the first half of 2018. The average workday traffic at Dulles declined by 4.6% and non-workday traffic decreased by 5.0% mainly due to the impact of Hurricane Florence passing through the region. Subsequently, average daily toll revenue at Dulles has declined by 2.0% on pcp, delivering US$247,876 revenue for the September 2018 quarter.
Warnow Tunnel the other major toll road of ALX, located in Rostock, Germany, has put across the tremendous improvement in traffic performance for September 2018 quarter at the back of temporary maintenance activities on competing routes in and around Rostock. The rise was such that average daily traffic increased by 11.4% on pcp for three months ended 30 September 2018. Driven by the launch of higher toll prices over the last 12 months, company’s average daily toll revenue from Warnow Tunnel increased by 13.8% to €39,143.
The company has announced the retirement of Mr. Mark Goodrick as Chief Financial Officer (CFO) of the company from 30 November 2018. Further, it intends the appointment of Mr. Bodie ter Kuile as Mr. Goodrick’s successor from the date of his retirement, pursuant to Macquarie’s agreement.
Despite announcing decent rise in September quarter results, ALX’s share price has fallen by 0.146% to last close at $6.830 on 23 October 2018.
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