MAHB in the red for Q3
OGroup experience large contraction in passenger movements due to global impact of Covid-19 and prolonged MCO period in Malaysia and other countries
PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) posted a net loss of RM319.72 million for the third quarter ended Sept 30, 2020 compared to a RM197.87 million net profit recorded in the same period of the previous year, mainly due to the decrease in revenue.
Revenue for the period stood at RM396.69 million, a 70.7% decline from RM1.36 billion reported previously, in tandem with the significant contraction in passenger movements of 74.8% due to the global impact of Covid-19 pandemic and a prolonged movement control order (MCO) period in Malaysia and other countries.
According to its Bursa disclosure, in 3Q’20 the group’s Malaysia and Turkey operations recorded a loss before tax (lbt) of RM232.1 million and RM154.1 million respectively as compared to profit before tax recorded in the corresponding quarter in the prior year.
Meanwhile its Qatar operations posted a pbt of RM1.4 million compared to RM3.2 million registered previously due to a contract completion in the prior year.
In the nine month period, the group posted a net loss of RM431.17 million, against RM507.53 million reported in the same nine month period previously.
Revenue fell 58.6% to RM1.6 billion from
RM3.87 billion reported previously.
Moving forward, it opined that the overall demand for global air travel is expected to show continued resilience, as it has done over the last few months with traffic recovery in the near term depending on effective measures and standard operating procedures (SOPs), reinforced by airports and airlines measures and actions to ensure safety and security of passengers travelling by air.
It added that it has taken immediate and pre-emptive measures to mitigate its impact by implementing an aggressive cost optimisation plan which will keep the group relatively stable.
The 18-month plan involves recalibrating operational efficiencies i.e. rebasing cost and prioritising capital expenditure to conserve cash reserves and ensure that the group is able to meet its financial and operational obligations.
The group had also started to pare down non-essential operating costs with the aim of lowering it by at least 20%.