Acsa eyes more Brazilian concessions

Acsa won a bid for the expansion, maintenance and operation of Brazil's busiest airport, Guarulhos in São Paulo, in 2012. The concession spans 20 years and Acsa will provide airport management through a technical service agreement.

"We were part of the first round of concessions [in Brazil]. There is a second round and we are told there will be many more," Acsa CEO Bongani Maseko said on Friday, 29 August.

Also on Friday, Acsa reported its highest profit after tax since it was established in 1993 - R1.7bn for the 2014 financial year. This was an increase of more than 70% on the previous year's R991m.

Acsa also declared a R300m dividend to shareholders, about 18% of its total profit and up from R99m in the 2013 financial year. The company says dividend policy allows a dividend of up to 25% of the year's profits to be distributed.

The improved performance follows a difficult time for the stateowned enterprise after it was burdened with more than R18bn of debt after the 2010 Soccer World Cup in SA. But according to its results it had reduced its liabilities by more than 10% in the 2014 reporting period.

The improved performance was due to an increase in international passenger numbers and aircraft landings, as well as receipts from tariffs, Acsa chief financial officer Maureen Manyama-Matome said. Retail revenue from the company's on-board duty-free sales also contributed to profits, and early debt repayments reduced finance costs.

Acsa repaid R1.4bn of its debt through proceeds from the sale of the Durban airport to Transnet, Manyama-Matome said.

The investments in airports in Brazil and India had also contributed to profits. In 2006 Acsa won a bid for a concession for the modernisation of India's two main airports, in Mumbai and Delhi. The concession spans 30 years with Acsa working to modernise, operate, develop and manage Mumbai International Airport.

Acsa has invested R258m in the Brazil concession, which is valued at R496m, said Maseko.

The R205m investment in the Mumbai concession in India is now worth R771m.

Transport Minister Dipuo Peters said it was through SA's membership of the Brazil, Russia, India, China, SA (Brics) group of developing nations that Acsa was able to explore opportunities in Brazil and India.

"The airport [in Brazil] has been experiencing explosive growth, which has nothing to do with the World Cup but has been quietly growing at a phenomenal pace," Maseko said.

Acsa's aeronautical revenue grew to R4.6bn during the period, showing a year-on-year increase of 7%, which was attributable in part to a 6% rise in international aircraft landings and a 5.5% tariff increase for the year under review.

Business Day