Atlas Arteria share price drives higher on record dividend guidance

Here's how Atlas' half-year results stack up.

| More on:
A family drives along the road with smiles on their faces.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Atlas Arteria has reported its half-year results to 30 June 2022
  • Toll revenue jumped by 25% as traffic conditions improved across the portfolio
  • Full-year distribution guidance of 40 cents

The Atlas Arteria Group (ASX: ALX) share price is on the move today after the ASX 200 toll road group handed in its first-half 1H22 results.

While the S&P/ASX 200 Index (ASX: XJO) reverses by 0.4% in late morning trade, the Atlas Arteria share price has climbed 0.9% to $8.04.

Atlas Arteria share price rallies as COVID recovery continues 

Here's a summary of the headline results from Atlas' first-half report:

  • Weighted average traffic was 22.7% above 1H21 and just 1.3% below 1H19
  • Toll revenue came in at $53.8 million, up 25% on the prior corresponding period (pcp) of 1H21
  • APRR toll revenue grew by 20% on the pcp to €1,290 million
  • Statutory net profit after tax (NPAT) soared 184% on the pcp to $117.1 million
  • Distribution guidance of 20 cents for 1H22 and a further 20 cents for 2H22

A record full-year distribution of 40 cents would represent an 11% increase over FY21. It puts Atlas shares on a prospective forward dividend yield of 5%.

However, for now, this is simply guidance. Atlas expects to announce its first-half distribution in September. 

On the whole, Atlas' first-half growth was driven by increased traffic across the APRR network and the easing of COVID restrictions.

APRR is the second-largest toll road network in France and the fourth-largest motorway group in Europe. 

Atlas holds a 31.14% indirect interest in APRR, which brings in the lion's share of the group's revenue. In the first half, APRR contributed to 90% of Atlas Arteria's revenue.

What else happened in 1H22?

APRR traffic was the highlight, increasing by 23.4% on the pcp on the back of a busy winter holiday period, strong domestic tourism, and reduced COVID restrictions across Europe. Notably, these traffic levels were 2.3% higher than pre-COVID levels of 1H19.

During the half, APPR expanded its network with the addition of the A79 motorway in southern France. Construction of the 88km road upgrade is expected to finish in late 2022, with tolling to commence on opening.

The roll-out of electric vehicle charging stations across the APRR network continues. Around 70% of motorway service areas are now equipped with high or very high power terminals. 

At Dulles Greenway in the United States, Atlas' second-largest contributor of revenue, traffic increased by 12.3% on the pcp. However, traffic remained 34% lower than 1H19 due to the delayed return to office-based work.

What did management say?

Commenting on the results, Atlas Arteria CEO Graeme Bevans said:

Atlas Arteria delivered a strong result during the period, driven by improved operating conditions across France, Germany and the USA.

Atlas Arteria is well positioned in the current high inflationary environment. In 2022 we are absorbing some inflationary impacts in our costs given higher pricing, however with toll prices at APRR, ADELAC and Warnow Tunnel directly linked to inflation and a high proportion of fixed debt across the portfolio, securityholders stand to benefit from 2023 onwards.

What's next?

Commenting on the outlook, Atlas noted that its financial performance was positively correlated to inflation. Thus, shareholders stand to benefit during a high inflationary environment.

This is because most of the toll prices across Atlas' network are directly linked to inflation. In other words, it can hike up toll prices as inflation soars.

Rounding out its outlook statement, Atlas believes it has strong organic growth potential within the current portfolio and continues to focus on improving average concession life.

Atlas Arteria share price snapshot

Since Atlas benefits from rising inflation, the Atlas Arteria share price has bucked the broader ASX 200 this year to punch in strong gains.

In the last six months, the Atlas Arteria share price has jumped 24%. Zooming out further, Atlas shares are up 17% in the last year.

Should you invest $1,000 in Evt right now?

Before you buy Evt shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Evt wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Gold

Newmont share price lifts off on first-quarter results

The ASX 200 gold stock is charging higher on Thursday.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Up 53% in a year, why is this ASX 200 financial stock leaping higher again today?

Investors are sending the ASX 200 financial stock soaring on Wednesday. Let’s see why.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX 200 uranium stock rocketing 17% on Wednesday?

The ASX 200 uranium stock is racing higher today. But why?

Read more »

Piggy bank at the end of a winding road.
Dividend Investing

Why this $44 billion ASX 200 dividend stock is pushing higher today

The ASX 200 dividend stock trades on a yield of 4.6%.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Why is the Santos share price racing ahead of the ASX 200 today?

Santos shares are enjoying a day of strong outperformance. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

What's happening with the AMP share price on Thursday?

A lot of AMP shares are changing hands on Thursday. But at what price?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »