Interlink Roads
| UTA interest in Interlink Roads: | 19.2% |
Interlink Roads manages the M5 South West Motorway (M5) in Sydney, Australia under a concession agreement with the NSW Government. The concession agreement expires in August 2023.
Performance highlights 2009
Interlink Roads generated a return of 0.2 percent for the year and has delivered 20.7 percent per annum since inception.
Total toll revenue was $157.0 million for the year, an increase of 1.3 percent on last year. Normalised EBITDA was $144.4 million for the year, 0.6 percent higher than last year and on budget. Toll revenues and traffic levels outperformed the previous year's results despite the slowdown in the economy however traffic mix has been impacted with heavy transport vehicle traffic affected to a greater extent.
Interlink carried an average of 111,014 vehicles per day for the year, which was 0.5 percent higher than last year.
Performance outlook
Traffic growth is expected to remain resilient during 2010, however truck traffic growth is expected to be lower relative to the strong growth rates in recent years. The majority of the traffic growth is expected to occur in the off-peak periods as the M5 approaches capacity in peak commuting times. During the financial year, management submitted a non-binding proposal to the NSW Roads and Traffic Authority (RTA) in relation to the widening of the M5 from two to three lanes and associated works along the concession corridor. The proposal remains subject to negotiations with the RTA. It is expected that Interlink will resubmit a refined business case (including scope, traffic, timing and cost estimates) over the coming months.
The M5 widening project is expected to provide improved travel times from the city to the south, and towards the city up to King Georges Road. As a result, feedback from the RTA has been positive and assuming negotiations progress, management expect financial close to occur by mid 2010, with works to commence shortly thereafter.
Interlink currently has $515 million of senior secured debt which matures in June 2010. Management are working to ensure adequate new facilities are in place prior to December 2009.
(1) Excluding a periodicals provision of $3.3m due to a change in accounting standards.
Interlink roads
Financial and operational performance
| 30 June year end | 2005 | 2006 | 2007 | 2008 | 2009 | CAGR* |
| Average daily traffic (vehicles) ('000) | 102.1 | 105.5 | 107.9 | 110.5 | 111 | 2.1% |
| Toll revenue ($m) | 121.5 | 127.2 | 146.5 | 155 | 157 | 6.6% |
| EBITDA ($m) | 108.9 | 115.4 | 128.1 | 143.5 | 144.4 | 7.3% |
* CAGR: Compound Annual Growth Rate
For more information please visit the Interlink Roads website