Cintra raises Toronto tolls by 9 percent
Cintra Says Tolls on Highway in Toronto Will Rise 9% (Update1)
Jan. 2 (Bloomberg) -- Cintra Concesiones de Infraestructuras de Transporte SA, the road operator controlled by Spanish builder Grupo Ferrovial SA, said tolls on the 407 ETR highway in Toronto will rise about 9 percent after traffic increased on the road.
The hike will vary between 8.7 percent and 9.9 percent, depending on whether drivers travel during peak traffic hours or not, Madrid-based Cintra said today in an e-mailed statement. The change will take effect Feb. 1.
``Very positive,'' Banco BPI SA analysts Bruno Almeida da Silva and Ana Horno said in an e-mailed note. ``Given the year- on-year traffic slowdown recorded throughout the year we were expecting that the tariff revision for 2006 would stand below the 7.2 percent upward revision made in each of the two previous years.''
The 407-ETR highway in Canada contributed 40 percent of total nine-month revenue at Cintra, which has expanded further in North America by winning projects in Chicago and Texas. Last month the company entered the Italian market.
Shares of Cintra gained as much as 2.1 percent to 9.97 euros, and traded at 9.93 euros as of 10:56 a.m. in Madrid, giving the company a market value of 4.9 billion euros. Ferrovial shares climbed as much as 1.7 percent to 59.50 euros, and traded at 59.25 euros.
Cintra said in November revenue at the Canadian toll road increased 11 percent and traffic increased 6 percent in the 10 months through October. The Spanish company holds a 53.2 percent stake in the 407-ETR highway.
To contact the reporter on this story:
Joao Lima in Madrid at jlima1@bloomberg.net.
Last Updated: January 2, 2006 04:59 EST
© 2005 The Associated Press: www.bloomberg.com
Jan. 2 (Bloomberg) -- Cintra Concesiones de Infraestructuras de Transporte SA, the road operator controlled by Spanish builder Grupo Ferrovial SA, said tolls on the 407 ETR highway in Toronto will rise about 9 percent after traffic increased on the road.
The hike will vary between 8.7 percent and 9.9 percent, depending on whether drivers travel during peak traffic hours or not, Madrid-based Cintra said today in an e-mailed statement. The change will take effect Feb. 1.
``Very positive,'' Banco BPI SA analysts Bruno Almeida da Silva and Ana Horno said in an e-mailed note. ``Given the year- on-year traffic slowdown recorded throughout the year we were expecting that the tariff revision for 2006 would stand below the 7.2 percent upward revision made in each of the two previous years.''
The 407-ETR highway in Canada contributed 40 percent of total nine-month revenue at Cintra, which has expanded further in North America by winning projects in Chicago and Texas. Last month the company entered the Italian market.
Shares of Cintra gained as much as 2.1 percent to 9.97 euros, and traded at 9.93 euros as of 10:56 a.m. in Madrid, giving the company a market value of 4.9 billion euros. Ferrovial shares climbed as much as 1.7 percent to 59.50 euros, and traded at 59.25 euros.
Cintra said in November revenue at the Canadian toll road increased 11 percent and traffic increased 6 percent in the 10 months through October. The Spanish company holds a 53.2 percent stake in the 407-ETR highway.
To contact the reporter on this story:
Joao Lima in Madrid at jlima1@bloomberg.net.
Last Updated: January 2, 2006 04:59 EST
© 2005 The Associated Press:
posted by Porkus Maximus Tex: at Monday, January 02, 2006
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