Transurban expects 7% dividend uplift
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The news: Toll giant Transurban expects a 7% uplift in dividends for the 2024 financial year compared to 2023, after reporting that net profit more than quadrupled in the first half.
The numbers: Transurban posted first-half net profit of $230 million compared to the $55 million a year ago, as traffic on its Australian tollroads rose and finance costs fell. Average daily traffic increased 2.1% with proportional toll revenue up 6.3% to $1.76 billion.
The FY24 distribution guidance of 62 cents per security represents 7% growth on the FY23 distribution and is currently expected to include approximately 4 cents per security from WestConnex cash, previously held during construction.
The context: Transurban said that strong growth in traffic and increased toll revenue helped the company to a strong first half and kept it on track for its full year guidance.
Michelle Jablko, who became CEO in October 2023, said the company is well positioned to deliver growth through existing opportunities, supporting significant population growth that is forecast in key markets and emerging mobility trends.
The source: ASX announcement
