Sharechat Logo

Wellington Airport keeps in regulator's range while lifting earnings 44 percent

Wednesday 21st May 2014

Text too small?

Wellington International Airport, which is two thirds owned by Infratil, boosted full-year profit by 44 percent while keeping returns within the range prescribed by regulations.

Net profit for the year ending March 31 was $23.5 million, up from $16.2 million a year earlier, the airport said in a statement. Sales rose 4.4 percent to $110.9 million, while its return on aeronautical assets was 6.2 percent, below the Commerce Commission's 8 percent limit.

Airports are required to disclose price setting methodology, financial statements and business plans to the regulator, as well as keeping returns under 8 percent to limit excessive profits. The Commerce Commission and Wellington Airport have been at odds about how this return is calculated.

The airport is continuing talks with airlines over changes to its runway and terminal services. Air New Zealand has accused the airport of price gouging, after the national carrier last year flagged a $200 million lift in landing fees over the coming five years.

Earnings from its landing and terminal charges rose 5.3 percent to $65.9 million in the year as it passed the 750,000 international passenger mark for the first time. Domestic passenger growth rose 1 percent in the year, the airport said, without being more specific.

Property rent and lease income gained 4 percent to $11.3 million. Its retail and trading activities unit lifted 2.8 percent to $33.7 million.

Over the next five years the airport is planning to spend $250 million on a terminal expansion, hotel, carpark as well as moving the fire station and a noise mitigation programme for neighbouring residents.

Wellington Airport's NZX-listed bonds, which pay annual interest of 6.25 percent and mature in May 2021, were unchanged at $101.876 per $100 face amount at a yield of 5.95 percent, according to NZX data. The airport listed the bonds in a $75 million offer last October, after having earlier raised $50 million in bonds from institutional investors in June.

Shares in Infratil were unchanged at $2.40.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite
ANALYSIS: Why banks don't pass on full OCR cuts
NZ Europeans make up 80% of business leaders, survey shows
Zespri tries to whet American appetite for kiwifruit
MARKET CLOSE: NZ shares fall as Pushpay follows Aussie software firms lower

IRG See IRG research reports