REPORTING SEASON: Transurban Group (TCL)

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Figure 1: Transurban Group 12 month chart

 

Transurban result boosted by traffic growth

·         Toll roads operator Transurban (TCL) reported better than expected FY14 numbers today.

·         The strong result was driven by the fact Transurban is now in a growth phase after ending the construction phase of many of its toll roads. Construction costs over the FY14 year fell by 58.8% but the loss in construction revenue down 58.7% pushed total revenue over the period down 3.8%

·         Toll revenues continued to increase through greater use and efficiencies up 13.1%

·         Free cash flow for the year increased by 29% over the last year to $571.9Million and gearing improved over the year from 42.8% down to 41.0%

·         Distribution already reported to the market back on the 23rd of May. TCL reported a second half distribution of $0.18 a share (that includes a 3.5 cent fully franked component.) to be paid on 14 August 2014

·         Transurban confirmed its distribution guidance of $0.39 for the FY15 year. TCL expects the payout ratio to equal 70% of NPAT in FY15.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,