NAHCO posts highest profit in 5 years

NIGERIAN Aviation Handling Company recorded a profit of N2.1 billion in the nine-month of 2022, a huge 725 percent increase from N725 million recorded in the same period of 2021.

The firm’s revenue surged 50.6 percent to N11.3 billion in ninemonth of 2022 from N7.5 billion in the nine-month ended 2021.

According to the company, revenue represents the amount invoiced to customers for passenger handling, ground handling, and cargo less trade discounts but excluding value-added tax.

Passenger and aircraft handling income from passenger including invoices raised for check-in formalities, passenger profiling, security, and baggage handling (loading and offloading) amounted to N6.85 billion, up 130 percent from N2.98 billion in the reviewed period.

Revenue from leasing and disinfection and other services dropped 20 percent to N343 million in September 2022 from N429 million in September 2021.

Revenue from Cargo handling (import cargo) stood at N3.67 billion, indicating a 7 percent increase from N3.41 billion in September 2021.

Cargo Handling includes invoices raised for cargo documentation services for airlines, import and export cargo facilitation through Nigeria’s biggest network of customs bonded warehouses in Lagos, Kano, Abuja and Portharcourt, Kaduna, and Enugu, using Galaxy computerisation system, which ensures safe storage and easy retrieval of cargoes.

The revenue obtained

Cargo handling (export cargo) stood at N438 million, 3.8 percent from N422 million in the reviewed period.

The company stated that they lease equipment to airlines for services that are not covered in the Standard Ground Handling Agreement. The equipment rental and maintenance revenue amounted to N565.5 million, 60 percent increase from million in September 2021.

Rental income from investment property stood at N156.2 million in September 2022, up 8 percent from N144.8 million in September 2021.

Foreign exchange (loss)/gain realized amounted to a loss of N49.3 million in September 2022 from a gain of N5.1 million in September 2021.

Sundry Income inekuma creased to N123.7 million, 86.5 percent increase from N66.3 million in September 2021.

Income from training services amounted to N1.48 million in September 2022, 70.4 percent from N5 million in September 2021.

Nigerian Aviation Handling Company paid the sum of N623 million as a tax charge for the period ended September 2022, 121 percent from million in the same period of 2021. The company’s expenses on diesel, oil, motor repairs, and fuel surged 93.6 percent to N333 million in September 2022 from N172 million in September 2021.

Consulting fees increased to N23.8 million in September 2022, 75 percent from N13.6 million in September 2021.

Basic earnings per share attributable to shareholders stood at N129 from N44 in the period reviewed.

Two weeks ago, former workers of the Nigerian Aviation Handling Company (NAHCO) took their grievances to the National Industrial Court over the nonpayment of N1.3 billion severance payment due to them since 2018.

The workers, in a view, to ensure their entitlements are duly paid took NAHCO Plc (now NAHCO Aviance), the Pension Transition Arrangement Directorate (PTAD) and the Bureau of Public Enterprises (BPE) to court, praying for an order to ensure the payment of their benefits.

About 750 workers were disengaged after NAHCO was privatised in 2005. They were supposed to be paid over N1.13 billion worth of severance packages as benefits. However, they are yet to get the payment.