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Nahco Aviance H1 profit up 19.24% despite challenging operating environment

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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.

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Aviation

Akwa Ibom Boosts Ibom Air Fleet With Two New Aircraft

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In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.

The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.

READ ALSO: FCTA Allocates N9.8bn To Upgrade Abuja Airport’s Presidential Wing

At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.

He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.

The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.

“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.

Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.

Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.

Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.

Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.

Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.

Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.

Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.

Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.

Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.

 

 

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BREAKING: Private Air Strip Owners Pay Handsomely – Keyamo

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Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.

He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.

Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”

ALSO READ: Why Foreign Airlines Must Patronise Nigerian Caterers – Keyamo

Keyamo expressed confidence that by the time his Ministry  was done enlightening them, “they will be satisfied”.

He added that “the privates air strip owners pay the Federal Government handsomely for these services.”

Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.

“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.

“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.

“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.

“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.

“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.

“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.

“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.

“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.

“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”

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Aviation

Helicopter Crash: Search Still On-going, No Additional Bodies Found

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The NNPC Ltd has clarified that beyond the three bodies found in the ill-fated helicopter operated by East Winds Aviation that crashed on Thursday in Port Harcourt, no other bodies have been recovered.

This was contained in a statement in Abuja on Sunday by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.

ALSO READ: People Ponder Cause Of Port Harcourt Helicopter Crash

“The Company further notes that intensified search and rescue operations for the remaining bodies along with relevant authorities is still ongoing.

“Once again, our hearts and prayers are with family members of this unfortunate incident,” the statement added.

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