Transurban’s profits surge as motorists are slugged with toll increases above inflation
Transurban’s profits soar as motorists are plagued with toll increases above inflation
Profits for highway group Transurban quintupled with the results revealed after drivers were slapped with toll hikes above the latest rate of inflation.
The company’s full-year profit for 2022-23 rose 429.9 percent to $92 million, a level five times the $16 million profit from 2021-22, when lockdowns reduced driving.
Transurban, which owns highways in Sydney, Melbourne and Brisbane, saw its toll revenue rise 21.8 percent to $2.831 billion.
In the presentation of the results, Transurban boasted that the high inflation in fiscal year 2023 would continue to help them in fiscal year 2024.
“Some further benefits from inflation in FY23 will continue to flow through FY24 earnings and will build over time,” it said.
While inflation has eased from high levels, the delay in the official release of data means drivers will continue to endure sharper price increases in the later months.
Motorists in Sydney saw their toll rise on July 1 by more than the June quarter inflation rate of 0.8 percent over three months.
On the M7 motorway in the west of the city, tolls rose by 13 cents to $9.51, an increase of 1.4 per cent.
Motorway group Transurban’s profits quintupled with results revealed after drivers were slapped with toll increases above the latest inflation (pictured is an E Tag reader in Melbourne)
In its results presentation, Transurban boasted that high inflation in FY 2023 would continue to help them in FY 2024
It was a similar story with the North Connex, where the toll was increased by 12 cents to $9.35.
While quarterly and annual inflation rates moderated in June, the toll increases on July 1 did not reflect that, as the Australian Bureau of Statistics did not release its June quarter inflation figures until July 26.
Some toll increases are tied to inflation, but other factors are taken into account in contracts signed with various state governments, with some increases occurring annually and others quarterly.
NSW Roads Minister John Graham admitted in late June that upcoming July 1 toll increases were difficult, following a toll review by former Australian Competition and Consumer Commission head Allan Fels.
“This latest toll hike comes at a time when the cost of living remains hard on families and individuals across NSW,” he said.
Presenting Transurban’s results, it was recognized that tolls exacerbated the cost-of-living crisis, citing the government’s review in New South Wales.
“The Review identified congestion, travel time savings, cost-of-living impacts and inconsistencies in different tolling schemes as areas of concern,” it said.
The company’s annual profit for 2022-23 rose to $92 million, a level five times its $16 million profit from 2021-22 (pictured is a traffic jam at the entrance to Sydney’s Transurban-owned Eastern Distributor)