Toll road operator Transurban has almost quadrupled its first-half profits despite a relatively muted increase in traffic.
Transurban reported a profit $331 million for the six months to December 31, up from $88 million in the previous corresponding period.
Toll revenue on a proportional basis — taking into account Transurban's ownership share of the roads in its portfolio — rose 10.5 per cent to $1.2 billion.
Average daily traffic edged up just 1.4 per cent, constricted in large part by ongoing road widening works in Melbourne and on Sydney's M2 project.
Transurban operates most of the key toll roads in Sydney, Melbourne and Brisbane, as well as part of a ring road in the US, surrounding Washington DC.
The company managed to boost its margins across all its regions, with Melbourne's City Link project seeing its earnings' margin increase from 86 per cent to 88.5 per cent, thanks to an increase take from the trucking sector.
Sydney (81.2 per cent) and Brisbane (71.2 per cent) also delivered healthy margins.
Transurban has $11 billion worth of new projects on its books, including the $6.7 billion West Gate Tunnel project in Melbourne.
It is also in the running to take the controlling stake in Sydney's West Connex project, although it told investors its bidding would remain disciplined and "no asset is a must win".
Transurban raised its interim dividend to 28 cents per share and remains on target for a full-year payout of 56 cents, a 9 per cent increase on last year.
The result was in line with market expectations, leaving Transurban shares unchanged at $11.36 at 11:30am (AEDT).
