Acsa reporting biggest profit yet

ACSA has reported
its highest profit
ever – R1,7bn for the
financial year ended March
31, 2014, despite falling
passenger numbers. The
airports company reported
an increase of 73% on 2013
figures, when it posted a
significant R991m profit.
The airports company
plans to invest R7,7bn in
capital expenditure, including
infrastructure developments
at South African airports, over
the next three years but there
are no significant passenger
tariff hikes on the cards.
According to the annual
report Acsa recently tabled
in Parliament, the Regulating
Committee will grant a zero
tariff increase permission for
the current financial year.
Bongani Maseko, Acsa
ceo, says the company
recorded a profit for 2014
despite reporting stagnating
passenger numbers for a
second year. “As predicted,
domestic passenger traffic
remained flat, and we note
that levels closely align to
the country’s GDP. However,
international traffic increased
by about 4% from the
preceding year, probably on
the back of the weak rand
and from some positive
signs of growth coming
from the United States and
elsewhere.”
Acsa cfo, Maureen
Manyama-Matome, says:
“The [financial] results are
primarily driven by a growth in
revenue as well as reduction
in the finance costs. The
increased profits are partly
the result of the major capital
expenditure programme,
which was completed by
2010.”
She says 61% of the funds
for the capital expenditure will
come from cash generated
from operations and cash
carried over from this year.
The funding shortfall requires
new borrowings of R1,3bn in
2016 and R1bn in 2017.
Almost half of the R7,7bn
investment (49%) will be
spent on refurbishment
and replacement of assets,
29% on capacity, 13% on
efficiency and technology,
6% on compliance, 2% on
rehabilitation and 1% on
commercial operations.
Chris Zweigenthal, ceo
of Aasa, says the increase
in profits was expected for
2014. He adds that the
announcement of the capital
investment plans don’t come
as a surprise and that no
major expansions are on the
cards for the next five years.
The main projects on the
cards for 2015 include the
realignment of the runway
and new domestic terminal
at Cape Town International
Airport