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PHILLIP LASKER, PRESENTER: Transurban has posted its second consecutive annual loss of more than $100-million.
That sent shares in the toll road operator tumbling over two per cent.
But Transurban says underlying earnings rose strongly thanks to solid traffic growth.
Neal Woolrich reports.
NEAL WOOLRICH, REPORTER: High petrol prices might be curbing some motor travel, but not necessarily on toll roads
Transurban has reported a 34 per cent rise in fees from its Australian and north American investments, which include Citylink in Melbourne and Sydney's eastern distributor.
CHRIS LYNCH, CEO, TRANSURBAN: Our roads are in heavily congested and heavily populated urban areas. And most of the trips on our roads are actually more by compulsion than by choice. Our roads are quite robust in terms of traffic projections and traffic growth
NEAL WOOLRICH: Transurban says earnings before interest, tax, depreciation and amortisation rose 19 per cent.
Despite improving its bottom line result Transurban still posted a net loss of $140-million.
CARL DAFFY, WILSON HTM: You'd look through that because at the end of the day these infrastructure and toll road assets go through a period of high depreciation, which is a non-cash item, in the early years, and of course the tolls are ramping up, and those tolls can run for decades.
NEAL WOOLRICH: Investors were not convinced though, pushing Transurban's share price down two and a third per cent.
The company reported a $27-million loss on its investment in ConnectEast, which operates EastLink in Melbourne.
And in June Transurban announced its 2009 full year distribution would be cut by more than half.
CARL DAFFY: The realignment of the dividend strategy for Transurban suggests that they will bring the dividend back to a level which is more commensurate with the operating cash flow that the company is generating, and we see that as a positive and something that had to happen at some point in time.
NEAL WOOLRICH: The soaring cost of petrol has also been creating headaches for airlines.
But Regional Express has managed to increase fourth quarter profits by 32 per cent, despite its fuel bill rising by a third during the same period.
JOHN SHARP, DEPUTY CHAIRMAN, REGIONAL EXPRESS: And this I think gives you a very good view of how strong this business is when other airlines are all going backwards in this last quarter of the financial year, Rex is getting stronger and stronger and stronger.
NEAL WOOLRICH: The regional operator describes 2008 as its "annus horribilis".
But still posted a three per cent rise in full-year earnings.
Aside from fuel costs, Rex encountered a six per cent rise in maintenance expenses and a record attrition rate for its pilots.
It's only expecting to maintain current profitability in 2009 if fuel prices and exchange rates stay within current levels and pilot turnover doesn't rise above 25 per cent.
Source: Lateline Business
