{"id":55620,"date":"2014-08-07T14:09:53","date_gmt":"2014-08-07T18:09:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=55620"},"modified":"2014-08-07T14:09:53","modified_gmt":"2014-08-07T18:09:53","slug":"why-the-transurban-share-price-rose-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/why-the-transurban-share-price-rose-today\/","title":{"rendered":"Why the Transurban Share Price Rose Today"},"content":{"rendered":"
August 7, 2014<\/div>
\r\n<\/div><\/div>

By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to the Transurban Share Price?<\/h2>\n

Transurban Group [ASX:TCL]<\/strong> develops, operates and maintains toll roads across Australia and America. TCL has a 100% interest in City Link in Melbourne and Hill M2 and Lane Cove Tunnel in Sydney. Other Australian assets include Eastern Distributor (75.1% interest), M5 South West (50%) and Westlink M7 (50%) in Sydney. <\/p>\n

They also have three joint ventures in America. <\/p>\n

In total, TCL manage 1200 kilometres of roads in Australia.<\/p>\n

Transurban\u2019s share price closed 1.72% higher on Wednesday<\/p>\n

Why Did This Happen to TCL Shares?<\/h2>\n

Yesterday, TCL\u2019s full year June 30 details became available. <\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

While revenue from ordinary activities was down 3.8% year on year (YOY) to $1.15 billion, almost all the other numbers went up.<\/p>\n

Net Profit After Tax (NPAT) was a massive 64% higher to $282 million ($175 million the previous year). Toll revenue increased by 13.1% to $906 million. In addition, the company increased the full year dividend to 4 cents 35 cents. <\/p>\n

It\u2019s worth noting, however, that the increase in NPAT is driven by a 59% fall in construction costs from the previous year. In the past, Transurban have spent significant amounts on costly upgrades.<\/p>\n

Two things bumped up revenues. Increases in traffic (up 6% YOY), especially on the Hills M2 and Citylink infrastructures, and toll price growth (UP 12% YOY). <\/p>\n

What Now For Transurban Group?<\/h2>\n

While TCL has proven a profitable stock this year, gaining 12% to date, it\u2019s worth remembering that it is heavily indebted. <\/p>\n

Transurban has $6.8 billion in debt outstanding, and the finance costs this year were $470 million. All other costs totalled $391 million. However, in a first, the dividend is coming from cash flow rather than debt (as has previously happened). <\/p>\n

The increase in dividend payment for 2014 means it yields around 4.5%. Also, Transurban estimate full year 2015 dividend to rise to 39 cents. <\/p>\n

TCL\u2019s yield and its crushing monopoly on major freeway infrastructure make this stock hard to ignore. <\/p>\n

Shae Smith+<\/a>
\nEditor, Money Weekend<\/em><\/strong> <\/p>\n

Join Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why the Transurban Share Price Rose Today<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to the Transurban Share Price? Transurban Group [ASX:TCL] develops, operates and maintains toll roads across Australia and America. TCL has a 100% interest in City Link in Melbourne and Hill M2 and Lane Cove Tunnel in Sydney. Other Australian assets include Eastern Distributor (75.1% interest), M5 South West (50%) and Westlink […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-55620","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=55620"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55620\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=55620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=55620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=55620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}