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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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