Back to Top



Bookmark and Share

Positive Outlook Ahead After Another Good Year In 2012 For MAHB

28 March 2013

Sepang, 28 March 2012 - Malaysia Airports Holdings Berhad ("MAHB") held its Annual General Meeting (AGM) this morning at the Sama-Sama Hotel KLIA. It being amongst the first few companies (with Financial Year Ended 31 December 2012) to hold its AGM this year reflects on its efficiency and strong corporate governance.

Amidst challenging operating conditions in the aviation industry, MAHB turned in a performance that surpassed expectations in the Financial Year Ended 31st December 2012 ("FY2012"). MAHB recorded a revenue of RM3,548.1 million for the final year ended 31 December 2012 ("FY2012"), representing a growth of 28.8% compared to RM2,754.8 million in the corresponding period in 2011 ("FY2011"). With earnings before interest, tax, depreciation and amortisation ("EBITDA") of RM929.7 million, MAHB had outperformed its headline financial Key Performance Indicators ("KPIs") target for FY2012 of RM909.9 million. However, the nationalisation of the Ibrahim Nasir International Airport (INIA) by the Government of Maldives had resulted in the impairment of RM68.9 million. Consequently, the Group's Return on Equity (ROE) of 10.0% was lower than the headline KPI target of 11.61%. Profit before tax and zakat ("PBT") stood at RM602.8 million, representing an increase of 5.0% compared to the RM574.2 million registered in FY2011.

The increase in operating revenue was attributed to stronger results from the airport operations segment, driven by robust air travel demand and higher contribution from retail and commercial business. The aviation industry remained buoyant amidst the global economic headwinds as the overall global passenger traffic grew 4.0% in 2012, according to the Airport Council International. For the Group, despite faced with challenges throughout the year, such as route rationalisation by airlines, passenger growth outpaced the global passenger traffic growth. MAHB overall passenger traffic grew 5.0% in 2012, with a total of 67.2 million passengers having passed through MAHB's 39 airports in Malaysia.

"We remain committed to enhancing shareholder value and we have a dividend payment policy of at least 50% of the Group's profit after tax and minority interest. For FY2012, the Board had announced an interim dividend of 6% amounting to RM72.6 million, of which RM33.5 million was reinvested in Dividend Reinvestment Plan ("DRP") while RM39.1 million was paid in cash on 18 January 2013. A final dividend of 7.63% on single tier was approved today by the shareholders at the AGM," its Chairman, Tan Sri Dato' Sri Dr. Wan Aziz Wan Abdullah commented. Also passed by MAHB's shareholders is the resolution for MAHB to issue new shares with respect to the DRP until the convening of the next AGM.

On the service front, MAHB received the `Exceptional Service to Aviation by Pacific Asia Travel Association (PATA) in recognition of its leadership in the aviation industry in the region, while KLIA has won the `Best Airport Staff Asia Award 2012' in the SKYTRAX 2012 World Airport Awards as voted by customers from all over the world. KLIA has also received the platinum status in the Earth Check Certification and has been a member of the Green Globe 21 (GG21) since 2004.

MAHB has also launched a new hospitality brand called Sama-Sama for its landside and airside airport hotels. "Sama-Sama, meaning "togetherness" is founded on the core values of being inclusive in embracing people of all walks and cultures, treating guests with pride, respect and sincerity. Creating Sama-Sama brand has been an exciting journey for us and it has given us a platform to position the airport business in a different perspective for our customers and passengers alike. We intend to export Sama-Sama as our specialised airport hotel brand, to complement our airport operations and management services overseas," said Tan Sri Dato' Sri Dr. Wan Aziz.

The year 2013 is expected to be a better year for MAHB in terms of overall passenger traffic performance. Many of the airline routes and capacity cuts over the last year have been reinstated or are in the process of being reinstated, as evidenced by the stronger traffic growth registered in 4Q12. The entry of new airlines such as Malindo Air, Air France and Turkish Airlines, as well as MAS' entry as a full member in oneworld bode well for the Malaysian aviation. The Group expects to achieve a passenger growth of 7.1% for 2013 on the assumption that the Malaysian GDP growth remains in the range of 5.0%- 6.0% and the global economic environment and jet fuel prices remain stable.

The ongoing promotional efforts for Visit Malaysia Year 2014 coupled with a liberal aviation policy would encourage travel demand for Malaysia thus generating increased passenger throughput at our airports.

"As far as MAHB is concerned, we are shifting into a higher gear, our retail arm is ready to tap the opportunities of the forthcoming opening of klia2," Tan Sri Dato' Sri Dr. Wan Aziz commented on the potential revenue growth driven by retail and commercial segment.

The construction of klia2, is yet another benchmark for the Malaysian aviation industry. Built as the world's largest purpose-built terminal for low-cost carriers to cater to up to 45 million passengers per annum, it is progressing steadily and gaining momentum for its opening. The Operational Readiness and Airport Transfer (ORAT), a process involving shifting of operations from the current to future terminal, had started in phases at klia2. At the national level, ORAT is chaired by the Secretary General of Ministry of Transport.

Amongst the ORAT activities includethe successful trial run of the completed District Cooling System and the new ERL tracks and trains. While the construction works are on-going, preparations are also underway to ensure that human resources and procedural documents are in place for operations. Malaysia Airports is employing a total of 1,102 new staff for klia2, out of which 746 are aviation security, 86 are airport fire and rescue services, 98 are engineering and maintenance, and 172 are operations services. As part of the procedural documentation, klia2 has been gazetted on 22 February 2013 and all the Standard Operating Procedures, publications and manuals are being reviewed by the respective stakeholders. Other near completion works at klia2 includes the paving of the runway, and the air traffic control tower. Within the interior of the terminal building; tiling works, air-conditioning systems and check-in counters installation are being carried out.

As for the completion of klia2, the target date for the official opening is 28 June 2013. All efforts are being made towards this target date. MAHB is closely monitoring the progress of the work being done by the contractors. Though some of the works by the contractors are behind schedule, efforts are being taken by them to catch up and work towards the target date. As the terminal operations involve multiple stakeholders including airlines and agencies, it is important that all parties are ready before the terminal can be operational. Other stakeholders' facilities and resources also have to be completed on time and we are working closely together with all parties via the ORAT committee to ensure the readiness of all parties concerned. MAHB will from time to time update on the operational readiness of klia2.

"The feathers in our cap are not only testaments to our expertise and accomplishments, but a proof of the unyielding support from our stakeholders as well as our employees. The Board recognized the hard work of Malaysia Airports' Management and staff that contributed to the good results for year 2012 and decided to increase the bonus payment, not only to reward but also to further motivate staff to strive for even better results in year 2013.

Meanwhile the Managing Director Y.Bhg. Tan Sri Bashir Ahmad bin Abdul Majid who has been with the company since 2003 has requested the Board to seek a suitable successor to assume his position when his current contract ends in June this year and therefore would appropriately like to make way for a successor. However the Board would like Tan Sri Bashir to continue to guide the company through the current challenges facing the aviation industry. The Board will in due course identify a successor and will provide sufficient time for a proper transition. The Board has deliberated the matter and has forwarded the matter to MOF for decision.

On behalf of the Group, I would like to extend our appreciation to our airlines partners, vendors and suppliers, retailers, various government agencies as well as to our joint venture partners. Last but not least, thank you to our customers and shareholders who have supported our business all these years," Tan Sri Dato' Sri Dr. Wan Aziz concluded.

FB Like Banner
Events Calendar