Why Transurban's (ASX:TCL) share price would be in focus today

August 18, 2022 09:13 AM AEST | By Ashish

Why Transurban's (ASX:TCL) share price would be in focus today — Image source: © Phartisan | Megapixl.com

Highlights

Transurban reported a total revenue of AU$3.4 billion for FY22.

The company posted a statutory profit from continuing operations of AU$16 million.

The board of Transurban also announced a final dividend of 26 cents per share.

Transurban Group Ltd (ASX:TCL) on Thursday announced a total revenue of AU$3.4 billion for FY22, compared to AU$2.88 billion in FY21. The ASX-listed toll road operator also reported a statutory profit from continuing operations of AU$16 million, against AU$287 million loss in the financial year 2021.

The board of Transurban also announced a final dividend of 26 cents per share for the six months ended 30 June 2022. It was up 12% Y-O-Y. With this, the total dividend in FY22 stands at 41 cents per share. The company’s FY23 distribution is expected to rise to 53 cents per share, up 30% on FY22. “It is to include a portion of the additional WestConnex Capital Releases resulting from the acquisition to minimise dilution associated with the equity raising,” Transurban said in the ASX filing.

Transurban also reported a robust balance sheet position, with AU$3.9 billion in corporate liquidity, and AU$355 million in capital releases generated in FY22.

Transurban warned that FY23 cost growth is expected to be greater than FY22. The company said that the cost escalation would be due to:

Corporate and operational costs, which are expected to have similar drivers as FY22
Recovery in traffic volumes and new asset costs which are expected to add around 5% additional costs
Potential for additional costs related to early-stage development projects

What did Transurban’s management say?

Commenting on the results, Transurban’s Chief Executive Officer (CEO) Scott Charlton said that the benefit of new assets and increased mobility had contributed to an overall improving trend in traffic during FY22.

Charlton said that the financial year 2022 represented another year of significant development for the business which is expected to support longer-term traffic growth and distributions.

“While traffic numbers were broadly flat year-on-year from COVID-19-related disruptions and severe rainfall events in Queensland and NSW, it was encouraging to see fourth quarter traffic reaching a new high and exceeding pre-pandemic levels,” he added.

Transurban’s share price snapshot

On a year-to-date (YTD) basis, Transurban’s share price has risen over 5%. In the past 12 months, the stock gained over 7%. The past month’s gains stand at over 2%. In the past six months, the share price has risen by over 13%. The 52-week high and low for the stock stand at AU$14.93 and AU$12.03, respectively. Meanwhile, on Wednesday, Transurban’s share price closed at AU$14.66, up 0.27%.

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