Tuesday, September 3, 2013

■ SOUTH AFRICA: ACSA posts $97million profit for latest Financial Year despite drop in pax, traffic numbers.

The Airports Company South Africa (ACSA) has announced a ZAR991million (USD96.97million) profit, buoyed by a 16% rise in its revenue for its 2012/13 Financial Year to ZAR6.66billion (USD652.28million). This comes as seven out of the country's nine major airports recorded a slump in passenger traffic on the previous year's figures with aircraft landings also declining by 6% to 271'250, down from 272'320 in 2012.

According to ACSA, despite the decline, the company's strong growth for its 2013 financial year were primarily driven by an increase in aeronautical revenue, given that tariffs to compensate for the investment in the World Cup 2010 infrastructural expansion programme were only recoverable through tariff increases once the new facilities had been brought into operation.

Debt has been reduced from ZAR16.7billion (March 2012) to ZAR14.8billion (March 2013) as the company continues to honour its obligations, while maintaining an optimal capital structure. This has resulted in the reduction of the gearing ratio from 60% to 53% over this period. The early settlement of a ZAR1.3billion loan, together with other loan redemptions ahead of time, resulted in the net financing cost for the year being reduced by ZAR1.462 billion, a decrease of 28% when compared to that of the previous year.
During the period under review, total revenue increased by 16 percent to ZAR6.660 billion. Non-aeronautical income, derived from retail operations, advertising, parking, car rental, property and overseas operations, contributed ZAR2.414 billion to the total,” said Maureen Manyama-Matome, Finance Director of Airports Company South Africa.
According to Manyama-Matome, while international passenger traffic and aircraft landings increased by one percent, domestic travel, which accounts for 70% of overall traffic, suffered with the slow recovery in departing passenger numbers clearly demonstrating "the lethargic growth that threatens the health of the aviation industry, and projections for the next two years are for minimal growth at best."

Internationally, ACSA's Indian concession, Mumbai International Airport Ltd, saw its profit after tax decrease by 14% approximately ZAR240million largely due to increased expenses included paying agricultural taxes backdated to 2006, bad debt provisions and increased power and maintenance costs.

In the longterm, according to ACSA Managing Director, Bongani Maseko, the company plans to invest ZAR39billion in capital over the next ten years, divided between four categories, as follows:
  • Maintaining the current asset base – 33%
  • Efficiency and technology to improve functional effectiveness – 7%
  • Keeping pace with statutory and compliance obligations – 3%
  • Increasing airports’ capability to handle growing volumes of passengers, cargo and aircraft, as well as providing commercial facilities to cater for increasing volumes – 57%
Some of the major infrastructure projects include additional fuel storage tanks, remote apron stands, additional parking, and bulk earthworks and services for the midfield terminal at O.R. Tambo International. It must be noted, Maseko adds, that if capacity requirement projections indicate a foreseeable capacity constraint, it may be necessary to bring forward the delivery of the Midfield Terminal. 

To download the Full 2013 Integrated Annual Report, click here.