Hawke’s Bay Airport Limited faces Covid turbulence, future looks brighter
Today Hawke’s Bay Airport Limited (HBAL) released its annual report for the financial year to June 2022, a year which Chairman Wendie Harvey describes as a year of continued recovery from the still lingering effects of the global pandemic.
Ms Harvey said despite the year starting with signs of New Zealand reopening, Auckland’s extended lockdown through September and October resulted in a significant reduction in passenger numbers and remained below normal until in mid-April. The result was a disappointing business performance.
“Like many businesses across the country, we have continued to feel the pressures of Covid in the form of lower operating cash flow, increased costs and lower than expected passenger growth. .” said Mrs. Harvey.
“Despite these challenges, by the end of the year the business had returned to month-on-month profitability and passenger numbers were on a trajectory towards pre-Covid levels. All in all, it’s very encouraging, given the pressure on the business,” says Ms. Harvey.
2022 financial performance
Revenue for the year to June 30, 2022 increased slightly from the prior year to $6.73 million. However, costs such as insurance, electricity and tariffs have all increased significantly. Management worked hard to contain these pressures, but operating costs were still higher at $3.85 million from $2.90 million the previous year.
For fiscal year 2022, the airport has adopted a new approach to the valuation of its investment properties, aligning its reporting practices with those of its industry peers. Following this change and the reclassification of a plot of land in the Ahuriri Airpark, the company has restated a number of items in the financial statements.
As a result of these changes and other balance sheet movements, reported equity increased by $14.86 million..
In anticipation of 2023
Hawke’s Bay airport general manager Rob Stratford said 2023 is looking brighter and the focus is now on diversifying the business and its revenue streams to provide greater resilience to future shocks in the aviation industry.
“This year, we are firmly focused on making meaningful progress on a number of critical strategic projects, including the development of the business park, our joint venture with Manawa Energy for the solar park at the airport and the growth of services. air freight.” he says.
“The three projects aim to develop airport infrastructure that meets the needs of the Hawke’s Bay region. The airport is a critical piece of infrastructure that serves as the gateway to Hawke’s Bay. These initiatives are all aimed at fostering regional prosperity.
We will also continue to work towards our goal of becoming New Zealand’s most sustainable airport. The partnership we formed with ASB in 2022 secures us a sustainability-linked loan of $23 million allowing us to redirect our efforts towards carbon neutrality by 2030.”
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