Changi Airport Group reported Friday a net loss of S$953.72 million for the fiscal year ended 31 March, swinging from a year-earlier net profit of S$438.05 million after taking an impairment loss of S$442.08 million on its Brazil assets
The group has infrastructure and concession rights to operate the Antonio Carlos Jobim International (Galeão) Airport in Rio de Janeiro, Brazil, which had a carrying value of S$2.32 billion at end-March, the group said in a filing to SGX.
But due to the pandemic and a challenging business environment in Brazil, operations at Galeão Airport have been affected, the filing said, noting the amount of the impairment was determined after engaging an independent consultant.
Revenue for the fiscal year dropped to S$696.75 million, down around 78 percent from S$3.12 billion a year earlier, the filing said.
Loss allowances on loans to subsidiaries increased to S$10.22 million for the year, from S$8.47 million a year earlier, with S$776.84 million of loans to subsidiaries converted into equity, causing S$156.84 million to be added to the impairment allowance account, the filing said.
For the Singapore airport-related business, Changi Airport reported S$524.29 million in revenue, with a net loss of S$629.96 million, with Jewel operations reported S$89.32 million in revenue and a net loss of S$28.07 million.
In fiscal 2020 ended 31 March, the Singapore airport-related business reported S$2.71 billion in revenue, with a net profit of S$748.10 million, while Jewel reported S$129.09 million in revenue and a net loss of S$23.49 million.
Brazil’s airport-related business posted revenue of S$96.46 million with a net loss of S$291.36 million for fiscal 2021, compared with fiscal 2020 revenue of S$299.44 million and a net loss S$281.70 million.
No dividend was declared for the year, unchanged from a year earlier.
Changi Airport Group issued a cautious outlook.
“The impact of Covid-19 on the longer-term operational and financial performance of the group is still uncertain, and recovery of the aviation industry is dependent on future developments which the group is unable to predict with certainty,” the statement said. “If the situation persists beyond management’s current expectations, the group’s assets may become subject to write downs in the subsequent financial periods.”