Sharechat Logo

Auckland Airport faces $80m depreciation charge

Friday 18th June 2010

Text too small?

Auckland International Airport has flagged a one-off hit on its bottom line this year because of Budget tax changes removing the ability to claim depreciation on buildings that rise in value.

An $80 million change in the company's deferred tax liability for the year to June 30 will cut reported net profit, but will have no impact on cashflows, dividends, or banking covenants, the company said. 

Auckland Airport has previously forecast earnings of between $100 million and $105 million.  

"The reduction in the corporate tax rate will likely offset any impact from the removal of the ability to depreciate buildings," the company said in a statement to the stock exchange.  

Earlier this month, Auckland Airport announced the Qantas low-cost carrier, Jetstar, will begin daily flights from Singapore next March.

The shares rose 0.5% to $1.91 in trading today, and have declined 6.7% this year.  

The government removed property investors' ability to claim depreciation on buildings in the May Budget, and expects to net some $3.1 billion over the next four years.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Auckland International Airport Limited (NZX: AIA)
Auckland Airport sees growth in luring Asian travelers, tapping landbank
Auckland Airport shares climb to 6-year high on better earnings, higher dividend
Auckland Airport boosts FY profit 25 percent as property values rise, ups dividend
Auckland Airport expected earnings just within regulator's tolerance
Ex-Fonterra chairman van der Heyden to lead Auckland Airport board
Auckland Airport's 8 percent expected returns 'reasonable', regulator says
Auckland Airport 1H profit rises 11 percent on growth in domestic passenger traffic
Pre-Offer Announcement - Auckalnd International Airport
Auckland Airport flags $100 mln bond offer