Malaysia Airports Holdings Berhad, the operator of Kuala Lumpur International Airport, said its fourth quarter 2012 pre-tax profits were flat at RM134.8 million but construction profits of RM33.1 million made up a big chunk, more than double from the same period a year ago.
Excluding the construction profit, MAHB would report pre-tax profits for the quarter at RM101.7 million, a fall of 16.5 percent from same period in 2011. Lower profit was mainly due to losses from the premature termination of a Maldives airport contract.
For the full year 2012, MAHB said that its pre-tax profits were up five percent at RM602.8 million. The net profits for the whole of 2012 were two percent lower at RM395 million, with the fourth quarter’s net profits down by 19 percent compared to the same period a year ago. MAHB paid more taxes in the fourth quarter and for the whole of 2012, at RM57 million and RM208.5 million respectively.
MAHB said its profits came from strong revenues from construction activities. Total revenue for the fourth quarter rose 63 percent to RM1.328 billion. This brings its 2012 revenue to RM3.55 billion, a 29 percent jump compared with 2011.
Revenues from construction, relating to the new KLIA2 airport and expanding Penang International Airport, accounted for nearly half of its total revenues at RM737.5 million for the last quarter 2012 and RM1.385 billion for the whole year. This compares to RM290.2 million and RM820.5 million respectively for 2011.
MAHB booked RM69.8 million losses in Maldives as a 25-year contract to operate and refurbish the Maldives Ibrahim Nasir International Airport was ended in December last year, after only two years into the contract. MAHB has a 23 percent stake in a consortium which had an estimated $500 million value to manage the airport on Hulhule Island, near Male. It was dropped after a change of government in the Maldives.
The group said it may also suffer a RM30.2 million loss, resulting from its stake in Istanbul Sabiha Gokcen International Airport. This is yet unrecognised as the airport may be expected turn a profit later, MAHB said.
Excluding construction activities, revenue from airport operation was up 12.9 percent due to lower incentives given to airlines and higher passenger service charges. Other smaller but extraordinary rise in income came from investment income in structured products, which rose 38 percent to RM10.6 million in the fourth quarter of 2012.
The airports operated by MAHB saw a five percent increase in passenger growth in 2012, the statement to the exchange said. International passenger movements were up 6.1 percent and domestic passengers rose 3.9 percent over 2011.
MAHB said that despite warnings of slowdown in the global economy, it expected passenger traffic to be positive in 2013 and to grow by 7.1 percent. In addition, KLIA2, which is expected to start in June, will contribute positively.