Aviation
Nahco Aviance H1 profit up 19.24% despite challenging operating environment
LAGOS-The country’s transport and cargo business seems to be booming as Nigeria Aviation Handling Company plc’s (Nahco Aviance) first-half profit rose by 19.24 percent despite challenging environment, analysis of its financial statement shows.
For the first six months through June 2014, the company’s net income increased by 19.24 percent to N381.37 million, from N319.83 million in the same period of the corresponding year (HY) 2013.
Net margin, a measure of profitability and efficiency, increased to 9.95 percent in HY 2014 compared with 8.34 percent as at HY 2013.
It will be recalled that the company had reached agreement with the Nigeria Customs Service to extend its hours of operation at the Lagos airport cargo complex. This is to ensure prompt facilitation of goods that would reduce stockpiling of cargo at the tarmac and bulk breaking areas and will lead to maximisation of cargo potentials, thus expediting timely delivery to customers.
The company’s cost of sale slid by 7.38 percent to N2.47 billion in H1 2014 as against N2.30 billion as at H1 2013. Gross margin declined to 36.43 percent in HY 2014 compared with 39.63 percent as at HY 2013, while gross profit dipped by a single digit 6.27 percent to N1.42 billion in 2014 from N1.51 billion as at H1 2013, which means the company the needs to improve on the utilization of director material attributable to projects.
The ability of the company to use assets in generating profit was stable as fixed asset turnover remained flattish at 0.28 xs in the review period.
Analysts say the performance of nacho is an important part of the Nigeria business environment as the provision of transport system is one of the catalysts of economic growth and development.
Furthermore the resilient half year performance of the company shows firms can thrive amid environmental unpredictability.
Current ratio, which measures the ability of a firm to meet its short term obligation such as day to day running the business fell to 2.09x from 2.95x(at par with the industry average of 2.1x).
Nahco Aviance is a Nigerian diversified enterprise with interests in aviation cargo, aircraft handling, passenger facilitation, crew transportation and aviation training.
The company currently serves more than 35 airlines at seven airports across Nigeria. It handles about 70 percent of domestic and foreign airlines operating in Nigeria.
The return on average equity (ROAE) was 14.17 percent as return on average assets stood at 5.98 percent.
Nahco’s share price closed at N5 on the floor of the Nigeria Stock Exchange (NSE), while market capitalisation was N7.38 billion.
An Abuja-Accra flight experienced technical difficulties mid-air on Friday, forcing it to return to Abuja, shortly after departure.
The Nigerian Safety Investigation Board (NSIB) made the disclosure in a statement, adding that it has launched investigation into what it described as a serious accident.
Director, Public Affairs and Family Assistance, NSIB, Bimbo Olawumi Oladeji stated that preliminary investigations revealed the aircraft experienced an engine number two indication issue.
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It was gathered that the aircraft, with registration number 5NKAL which was operating a flight from the Nnamdi Azikiwe Airport, Abuja (DNAA), to Kotoka International Airport, Accra (DGAA).
She explained that four persons were onboard when the incident occurred. The crew immediately requested for a diversion back to Abuja due to the engine indication.
Oladeji added that the crew managed to safely land the aircraft at Abuja Airport at 18:16 UTC.
There were no injuries reported, and all individuals on board are safe.
Nigeria has acquired 12 pre-owned Alpha Jets from the French Air Force as part of efforts to enhance the operational capacity of the Nigerian Air Force (NAF).
The deal, facilitated through SOFEMA, a French military and aeronautics company, was announced by Olusegun Dada, Special Assistant to President Bola Tinubu on via X on Thursday.
He said, “All the 12 aircraft are ready for shipping.”
The Alpha Jet, a product of Franco-German collaboration, is a versatile military aircraft designed for light attack and advanced training missions.
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Equipped to carry bombs, rockets, and missiles, the aircraft also features a gun pod for close air support.
The NAF already operates 11 Alpha Jets, but this latest procurement signals a significant boost to its fleet.
Dada also confirmed that the Air Force is expecting 24 M-346FA light attack aircraft, ordered during the administration of former President Muhammadu Buhari.
The first batch of these Italian-made aircraft is expected to arrive early next year.
Air Chief Marshal Hasan Abubakar, the Chief of Air Staff, described the acquisitions as a testament to President Tinubu’s commitment to bolstering the armed forces.
“This renewal of our aircraft fleet reflects the government’s commitment to ensuring the safety and security of Nigerians,” Abubakar said.
The announcement comes on the heels of President Tinubu’s three-day state visit to France, where he met with French President Emmanuel Macron.
The visit, which took place from November 27 to November 30, highlighted deepening ties between the two nations.
To ensure the sustainability of its expanding fleet, the Air Force has proposed establishing a local maintenance hub.
Speaking in October, Abubakar noted that six units of the M-346FA aircraft were already in production, with the initial batch of three expected to be delivered in early 2025. The full fleet is projected to arrive by 2026.
“These developments underscore the importance of creating a domestic support system for the long-term upkeep of our aircraft,” Abubakar added.
As the holiday season draws near, Aero Contractors has introduced a minimum ticket price of N80,000 for all local flights.
The move, which will last until January 2024, aims to ease the financial burden on Nigerians amid the high cost of living.
Ado Sanusi, Managing Director of Aero Contractors, made the announcement on Tuesday during a press briefing, describing the fare reduction as a gesture to help Nigerians celebrate Christmas and the New Year without the stress of steep ticket prices.
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Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices, and we know the holiday season is nearby.
“In the spirit of Christmas, Aero Contractors has introduced what we call pocket-friendly Christmas prices. These fares, starting at N80,000, will apply to all our destinations, allowing Nigerians to travel without excessive costs.”
As of Tuesday afternoon, an economy class ticket from Lagos to Abuja was priced at N99,643, while business class tickets were being sold for N189,167.
Sanusi further explained that the initiative was designed to make it easier for families to reunite during the holidays.
“This is a way for us, as an organization with a long history of serving Nigerians, to give back to our loyal customers. We want to make it possible for families to meet their loved ones during this festive season without worrying about exorbitant travel costs,” he added.
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