Integrated transport company, Transurban Group (ASX: TCL) has published its half-year results for FY 2019. For the half-year period, the company has reported Proportional earnings before interest, tax, depreciation and amortization (EBITDA) of $1,001 million which is 9.8 percent higher than the previous corresponding period (pcp). For the period, the company has reported 376k hours in average workday travel-time savings. The Average daily traffic (ADT) increased by 2.7% in 1H FY2019 over the prior corresponding period. As per the statutory results for 1H 2019, the company earned a total toll revenue of $1,298 million and EBITDA of $971 million.
In Sydney, the total revenue increased by 7.7%, EBITDA increased by 8.2 percent and Average Daily Traffic (ADT) increased by 2.1 percent during the half year period. During the half year period, the company achieved financial close on WestConnex which will make an important contribution in improving the congestion as well as travel times. At NorthConnex, the company completed all tunnelling works with paving and mechanical-and-electrical works currently underway.
In Melbourne, the total revenue increased by 5.6%, EBITDA increased by 5.4 percent and ADT increased by 4.6 percent during the first half of 2019 over the prior corresponding period. The company made significant progress on the West Gate Tunnel Project with over 3.4 million working hours now completed, and it is expected that the West Gate Tunnel Project will result in generating over 6k jobs through the course of construction.
The company is witnessing travel-time improvements in both directions on CityLink after completion of the CTW State works and the drivers are now experiencing travel-time savings of between 30% and 50% for trips between Bulla Road and the Bolte Bridge during peak periods.
In Brisbane, the total revenue increased by 1.7 percent, EBITDA increased by 2.4 percent and ADT grew by 0.3% during the period. In January 2019, all motorway lanes were opened on Gateway Upgrade North (GUN). The company is expecting a progressive opening of new lanes on Logan Enhancement Project (LEP) in coming months, completion expected mid-2019, which will improve travel time reliability and safety.
In North America, the total revenue grew by 42.9%, EBITDA increased by 53.1%, and ADT grew by 1.4%. In the Greater Washington Area, the total revenue increased by 12.6 percent. At Greater Washington Area, 395 Express Lanes project is over 50% completed and it is expected that it will open in FY 2020.
In September, the company raised $4.8 billion of equity through entitlement offer and placement to fund WestConnex acquisition. The Board of Directors declared a distribution of 29.0 cents per share (cps) which will be paid on 15 February 2019 for the six months ended 31 December 2018. The company has reaffirmed its FY19 distribution guidance of 59.0 cents per share. It is expected that Five projects will be completed by FY 2021 and a further four projects will be completed by FY2024 which will support the ongoing distribution growth.
TCL’s shares traded at $12.170 (-1.926% intraday) with a market capitalization of circa $33.29 billion as on 12 February 2019.
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