Atlas Arteria profit up 17pc as tollroads get inflation boost
Atlas Arteria chief executive Graeme Bevans says the tollroad group is benefiting from inflation as rising toll fares helped lift its interim net profit by 17 per cent to $136.5 million.
But Mr Bevans warned Atlas Arteria’s lucrative French road could be more heavily regulated in future. Traffic rose on all the company’s roads in France, the United States and Germany in the six months ended June compared with a year earlier, except on its newest acquisition, the Chicago Skyway, where average daily traffic fell 2.4 per cent.
The Chicago Skyway is Atlas Arteria’s latest acquisition. Getty
Atlas Arteria paid $2.9 billion last year for a 67 per cent stake in the Chicago Skyway, a 12.5-kilometre bridge over the Calumet River typically used by commuters. The acquisition was controversial, with top shareholder IFM Investors – which has been creeping up Atlas Arteria’s share register – protesting the acquisition.
Atlas Arteria attributed to the decline in Chicago Skyway’s traffic to roadworks on connecting roads.
But the Chicago Skyway’s toll revenues rose by 8.6 per cent over the same period due to increases in toll fares, which went up 12 per cent in January for cars and will increase another 8.8 per cent in January 2024.
Atlas Arteria took $20.9 million equity accounted loss on the Chicago Skyway, reflecting non-cash amortisation of its tolling concession and fair value adjustments on debt.
The company has appointed a financial adviser to help it refinance maturing debt on the Chicago tollroad starting in the second half of the year, which will allow capital to be released in 2023 and 2024 to “smooth” dividends, Mr Bevans said.
Group income was bolstered by the strengthening of the euro and the US dollar against the
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