Re: Brisconnections shareholders - financial ruin
TWO ASX Feb 3 2009 ANN
03/02/2009 Half Yearly Report and Accounts
03/02/2009 Financial Results Release
http://media.wotnews.com.au/asxann/00924366.pdf
3 February 2009
BrisConnections announces financial results for the period ended 31 December 2008 and confirms project construction is on‐time and on‐budget BrisConnections (ASX: BCSCA) today announced financial results for the seven‐month period from 29 May to 31 December 2008.
This is BrisConnections’ first financial results announcement following its listing on the Australian Securities Exchange on 31 July 2008. The financial results were as expected and reflect the progress BrisConnections has made in constructing the Airport Link toll road in Brisbane, which officially commenced on 6 November 2008.
BrisConnections Chairman Mr Trevor Rowe AM said the project is proceeding to plan and excellent progress had been made in the design and construction of the largest road infrastructure project in Australian history.
“It is pleasing to see such a great start to this exciting and essential project. Construction is well underway: more than 1000 people are now working on the project and all four sites are well established. We are moving at a rapid rate physically with major tunnelling equipment arriving and site clearances underway.
“When completed Airport Link will provide a compelling solution to serious traffic issues in the Brisbane metropolitan area. It will be the longest road tunnel in Australia of more than 5.7 kilometres, with the total project extending over 8 kilometres including the Airport Roundabout Upgrade. Airport Link will reduce travel times by up to 50% and avoid up to 18 sets of traffic lights.
“BrisConnections is fully funded and we are well positioned to continue delivering on the construction phase of the project. We have syndicated debt facilities in place, which we began drawing on recently.
Also the two remaining instalments are fully underwritten by Macquarie Capital Advisers and Deutsche BanK.
“While we are naturally disappointed with our security price performance in the current market, I firmly believe Airport Link is a high quality infrastructure project that will deliver significant benefits to the community and the Queensland economy once completed. The success of this project, I believe, will provide significant value and future returns to our security holders,” Mr Rowe said.
For the financial period, BrisConnections incurred approximately $690 million associated with project funding, design and development, acquisition of plant and equipment, and initial construction costs. This is in line with its budget. Once Airport Link is complete, total project costs are expected to be approximately $4.8 billion.
In accordance with its accounting policies, BrisConnections has capitalised as future tolling rights approximately $445 million associated with the design and construction phase of the project.
Since listing on the ASX, BrisConnections has achieved a number of important project milestones including establishment of a highly experienced management team and project workforce; the signing of a $90 million contract to acquire two tunnel boring machines; commencement of construction in November 2008; and the drawing down of the fully committed finance facilities to fund the project. In addition, the first two roadheaders are ready to commence operations shortly with another three starting over the next 4 months and a further six over the balance of the project.
“We are preparing for busy times ahead and are confident that Airport Link, Northern Busway (Windsor to Kedron) and the Airport Roundabout Upgrades will be completed and operational on‐time and on‐budget, in accordance with construction contract timetable of June 2012” Mr Rowe said.
Second Instalment – updated timetable
BrisConnections confirms the second instalment of $1.00 on BrisConnections partly paid stapled units is due on Wednesday 29 April 2009. A Call Notice, setting out the total amount payable and details of how that amount should be paid, is expected to be despatched to unitholders on or around Monday 2 March 2009.