Malaysia Airports posts Q4 net losses of RM42.9m on Turkish ops


KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) swung into the red in the final quarter of FY15 when it sustained losses from the Turkey operations.


MAHB announced on Wednesday it posted net losses of RM42.90mil in the fourth quarter compared with earnings of RM577.73mil a year ago. Loss per share was 6.34 sen compared with earnings per share of 42.73 sen. Revenue increased to RM1.03bil from RM711.33mil. 

MAHB said it recorded a loss before taxation and zakat (LBT) for Q4 of RM58.1mil from profit before taxation (PBT) of RM597.5mil which was an unfavourable variance of 109.7% or RM651.7mil. 

The airport operator proposed a final single-tier dividend of 4.50 sen per share. 

In the Q4, MAHB said Sabiha Gokcen International Airport (ISGIA) and LGM Havalimani Isletmeleri Ticaret ve Turizm (LGM) posted loss before tax of RM700,000. 

“This was prior to taking into account the loss of RM59.5mil recognised primarily due to the amortisation of fair value for the concession rights owing to the fair valuation exercise on the acquisition of ISG and LGM,” it said.

Excluding the results of ISG and LGM, the group recorded lower PBT for Q4 of RM2.1mil versus RM597.5mil a year ago, an unfavourable variance of 99.7% or RM595.3 million. 

MAHB explained the unfavourable variance was mainly due to the one-off gain 2014 arising from re-measurement of fair value of investment amounting to RM483.7mil. 

This was the difference between the carrying amount of previously held equity interest and the acquisition date fair value of the net assets of ISG and LGM.

The group also recognised a gain on bargain purchase of RM314.9mill arising from the acquisition of ISG and impairment of goodwill arising from the acquisition of LGM of RM231.3mil a year ago.

Excluding the results of ISG and LGM and the acquisition adjustments, MAHB said the group's unfavourable variance was 93.0% or RM28.0mil versus a year ago was mainly due to higher depreciation and amortisation and finance cost by 105.1% or RM71.3mil and 27.6% or RM14.5mil. 

However, this was cushioned by lower administrative costs by 60.3% or RM24.4mil. 

MAHB said total costs for ISG and LGM for Q4 was RM301.0mil comprising mainly of depreciation and amortisation, finance costs, administrative cost, repair and maintenance and staff cost amounting to RM129.0mil, RM110.3mil, RM24.3mil, RM20.3mil and RM12.1mil respectively.

For FY15, MAHB’s earnings slumped to RM37.84mil from RM662.37mil in FY14.  Profit before taxation and zakat (PBT) fell to RM41.7mil in FY15 from RM749.3mil.

MAHB said included in the group’s consolidated revenue for FY15 were revenue recognised in ISG & LGM totalling RM920.1mil. ISG and LGM were acquired on 31 December 2014. 

As for airport operations, when excluding construction revenue, revenue from airport operations for FY15 rose 44.2% or RM1.11bil from FY14. Construction revenue of RM662.4mil in FY14 was for  the construction of klia2, which was completed in May 2014. 

It added that included in revenue from airport operations for FY15 was RM908mil, contributed by ISG and LGM. 

Excluding ISG and LGM, revenue from airport operations was 8.0% or RM201.5mil higher at RM2.71bil than a year ago when it was RM2.51bil.

ISG and LGM recorded a PBT of RM29.9mil prior to taking into account the loss of RM201.9mil recognised primarily due to the amortisation of fair value for the concession rights. 

“There were no construction profits recognised in the financial year as compared to RM28.5mil a year ago due to the completion of klia2 in May 2014. 

“Excluding the construction profit as well as the results of ISG and LGM, the group recorded a PBT of RM213.7mil in the financial year under review as compared to RM720.8mil in the previous corresponding year,” it said. 

The unfavourable variance in PBT was mainly due to the one-off gain arising from re-measurement of fair value of investment in ISG and LGM amounting to RM483.7mil.

MAHB said the group had also recognised a gain on bargain purchase of RM314.9mil arising from the acquisition of ISG and impairment of goodwill arising from the acquisition of LGM of RM231.3mil a year ago.

“Excluding the results of ISG and LGM and the acquisition adjustments, the group PBT was 39.2% or RM60.2mi higher than the previous corresponding year mainly due to higher revenue as stated above and higher other income which included the one-off gain on foreign exchange of RM63.4mil arising from the translation of the bridger loan and gain arising from the disposal of MAHB’s stake in DIAL of RM81.2mil.
 
“Apart from the above, the favourable variance in PBT was negated by higher total costs by 16.1% or RM426.0mil (2015: RM3.068bil; 2014: RM2,641.9 million) primarily arising from klia2 which started its operation in May 2014. 

The higher costs were due to the increases in finance costs by 77.3% or RM116.9mil, depreciation and amortisation by 24.0% or RM97.4mi, staff costs by 12.0% or RM74mi, repair and maintenance costs 17.7% or RM35.7mi, provision for doubtful debt by 976.3% or RM29.5mil and utilities by 7.9% or RM22.9mil. 

Total costs for ISG and LGM for FY15 was RM1.104bil, comprising mainly of finance costs, depreciation and amortisation, administrative cost, repair and maintenance, staff costs and utilities amounting to RM473.6mil, RM398.9mil, RM91.6mil, RM68.9mil, RM50.6mil and RM21.1mil respectively.