Sydney Airport lurches to loss in FY2020 as COVID-19 bites traffic

  • February 24, 2021 09:01 AM AEDT
  • Ashish
    Ashish
    Financial Journalist Ashish
    58 Posts

    Ashish is a Financial Journalist with an experience of nearly 9 years in the field of economy, stock market and foreign affairs. He has also spent a few years in the corporate sector. A mechanical engineer with post-graduation in marketing and operat...

Sydney Airport lurches to loss in FY2020 as COVID-19 bites traffic

Source: Shutterstock

Summary

  • Sydney Airport (ASX:SYD) had a dismal FY2020 as the coronavirus pandemic-induced restrictions negatively impacted the passenger traffic.
  • The passenger traffic recorded a significant fall from the corresponding period of the last financial year.
  • The company’s board also didn’t declare a dividend for the year due to revenue loss during the period.

Sydney Airport (ASX:SYD) on Wednesday reported a net loss for FY2020 as the coronavirus pandemic-induced restrictions had a massive impact on the passenger traffic. Also, the company’s board didn’t declare a dividend for the year due to revenue loss during the period.

Sydney Airport reported a net loss of A$145.6 million as it’s revenue fell 5.1 per cent to A$803.7 million. The earnings before interest, tax, depreciation and amortisation (EBITDA) declined 45 per cent to A$627.8 million.

Image Source: © Msteckew | Megapixl.com

The passenger traffic recorded a 74.7 per cent fall from the corresponding period of the last financial year.  While international passengers were down 77.5 per cent, the domestic numbers fell by 72.9 per cent.

The capital investment reduced to A$237.52 million for the year, with $152.8 million invested in the first half and A$84.7 million in the second half. The company reported a strong balance sheet with A$3.5 billion of liquidity as of 31 December 2020.

Image Source: © Mingchai | Megapixl.com

Company commentary

Chief Executive Officer, Geoff Culbert said that Sydney Airport had been affected both operationally and financially due to the coronavirus pandemic, which presented a crisis of unprecedented magnitude for the global aviation industry. The actions the company took, combined with the COVID-19 vaccines rollout, has laid a strong foundation for the recovery through 2021 and beyond, Culbert added.  

Outlook

The company didn’t provide any distribution guidance amid the ongoing uncertainty concerning the recovery in 2021. However, the company remains  cautiously optimistic that 2021 will see the industry recovery due to the vaccine rollout.

 

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Stock performance

On Tuesday, 24 February 2021, Sydney Airport shares closed at A$5.93, up 0.36 points, or 6.46 per cent, against the previous closing on Monday, 23 February 2021.


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