Transurban Sees Nearly 200% Profit Increase

Profit for toll road operator Transurban has seen an increase for the 2012-2013 financial year.

The company, which had been heavily written down last year, has seen its profit jump to 198.1%, putting its net profit at about $174.5 million.

Transurban’s profit was only pegged at $58.558 million in the previous financial year and was largely influenced the writedown of one of its assets, the Pocahontas 895, in Virginia, in the United States.

This asset unfortunately lost more money for the current year, but because toll roads in both Sydney and Melbourne were doing well, the performance of Pocahontas 895 has been offset. The company also keeps other assets that includes the Lane Cove Tunnel in Sydney, CityLink located in Melbourne, and the M1, M2, M5 and M7 motorways, also found in Sydney.

Overall, the rise in toll revenues for the company recorded to as much as 4.7% increase, while earnings have been pegged at 5.6% before depreciation, taxes and amortisation.

Scott Charlton, the head of Transurban, also said that traffic in Australia have significantly increased and roadworks and other developments have helped boost its revenue further. In a statement, Mr. Charlton said, “The business is positioned well with major enhancement projects on our urban networks providing a platform for growth in the coming years.”