PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) is targeting a hefty increase in earnings for the current financial year ending Dec 31, underpinned by the consolidation of its airport in Turkey into the group.
It is expecting a 76.5% increase in its earnings before tax, interest, depreciation and amortisation (EBITDA) to RM1.52bil.
The airport operator had forecast an EBITDA of RM861mil under its headline key performance indicators (KPIs) for last year, the airport operator told Bursa yesterday in its headline KPIs for 2015.
“MAHB completed the acquisition of Sabiha Gokcen International Airport (ISG) in Istanbul, and LGM Airport Operations Trade and Tourism Inc on Jan 2.
“ISG’s passenger movement is expected to grow by 15% this year, with 19% of the growth expected from the international sector and 12% from the domestic sector.
“Aircraft movements are expected to register a 13% growth while cargo movements would likely experience a 5% growth over last year,” MAHB said.
MAHB paid RM1.17bil for the completion of the last leg of its 40% acquisition each in ISG and LGM. Besides these two, MAHB also has a presence in India.
It added that the rise in EBITDA this year would also be complemented by the impact of a full year retail and commercial operations at KLIA2 and higher passenger movements.
Similar to 2014, MAHB has decided to exclude return on equity (RoE) from its headline KPIs this year due to significantly higher amortisation cost following the completion of KLIA2, thereby contributing to a lower RoE.
The Malaysia Financial Reporting Standard requires concession assets, including KLIA2, to be amortised within the shorter period of the remaining life of the operating agreements instead of the asset’s useful life.
Based on the prevailing factors, MAHB expected 2015 passenger traffic to record 85.8 million movements, a growth of 3% from 2014.
In a separate statement, MAHB said it had fixed its rights issue price at RM4.78, representing a discount of 28.8% to the theoretical ex rights price of MAHB of RM 6.71.
The rights shares, to be listed on March 27, are expected to raise gross proceeds of about RM1.32bil.