Expressway expects 10% revenue rise

The listed expressway operator Bangkok Expressway Plc (BECL) has raised its revenue projection for this year to 10% growth - up from a forecast of a 6% increase - as traffic volume has risen beyond expectations.

Traffic volume in the first 10 months of this year increased by 2.12% to 944,761 vehicles per day, up from 925,105 per day in the same period last year. Toll revenue rose by 10.31% to 20.713 million baht per day, up from 18.78 million year-on-year.

Suttida Sukhanindr, senior manager for investor relations at BECL, said the closure for repair of 13 overpasses in Bangkok had fuelled an increase in traffic in the city centre.

Revenue growth was also propelled by higher traffic in Chaeng Watthana due to the opening of government agencies and the development of residential projects and shopping malls.

"The figures for traffic volume, which have increased by 2% - more than the flat growth expected earlier - have made us confident of higher toll revenue this year," Ms Suttida told investors and analysts yesterday.

The company expects traffic to grow by 2% next year, with revenue growth also projected at 2%, with the opening of the new government complex in Chaeng Watthana boosting traffic in the area.

BECL expects a small gain of 24 million baht from its rival, Don Muang Tollway, raised tolls next month, which is expected to make some motorists use the expressway instead.

In the third quarter, BECL's net profit increased by 53% year-on-year to 482 million baht on revenue of 1.98 billion, up 14.4% from the same period last year. Toll revenue accounted for 1.92 billion baht.

The increase was attributed to the 12.25% rise in toll revenue from the same period last year, due to the opening of new roads that increased vehicles using the system, and the raising of tolls at the beginning of September.

Nine-month earnings rose by 43.5% year-on-year to 1.36 billion baht, with revenue up by 11.2% to 5.76 billion, of which 5.6 billion was toll revenue.

Sirima Dissara, an analyst at KGI Securities, forecasts BECL's net profit would rise by 4.7% this year to 1.7 billion baht and will reach 1.8 billion in 2010 due to an increase in traffic volume and dividends from SET-listed Thai Tap Water Supply Plc, in which BECL holds a 9.24% stake.

Shares of BECL closed yesterday on the Stock Exchange of Thailand at 19 baht, up 50 satang, in trade worth 47.29 million baht.