Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Wellington Airport lifts earnings by 44%

Wellington Airport keeps in regulator’s range while lifting earnings 44%

By Suze Metherell

May 21 (BusinessDesk) – 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)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news