The 2017 Annual General Meeting of Shareholders of the Airports Corporation of Vietnam was held on June 28 in HCM City (Photo: news360.vn)Hanoi (VNA) - The Airports Corporation of Vietnam (ACV) plans a 25 percentyear-on-year increase in revenue to 13.3 trillion VND (583.6 million USD) thisyear.
The corporation released this information at its annual general meeting ofshareholders held on June 28.
The company also targets pre-tax profits of 3.66 trillion VND, an increase ofseven percent over 2016, and expects to pay a dividend of nine percent.
The corporation expects to welcome 27 million international passengers in 2017,a surge of 14 percent year-on-year while the number of domestic passengers isprojected to reach 64 million, up 12 percent year-on-year.
The revenue target does not include income from the operation of airfields. Thefinancial plan released at the meeting does not take into account the effect ofexchange rate differences caused by ACV’s long-term and short-term borrowings,of which a large amount is in Japanese yen lent by the Japan InternationalCooperation Agency (JICA).
Lai Xuan Thanh, head of the Civil Aviation Authority of Vietnam (CAAV), waselected as a member of AVC’s board of directors, replacing Nguyen Nguyen Hung,former Chairman of the Board of Directors, on his retirement.
The meeting heard that total financial costs borne by ACV was around 10trillion VND, mainly for upgrading infrastructure, including 6 trillion VND on“typical” projects that will begin implementation this year.
The Prime Minister has assigned AVC to carry out a feasibility study for phaseone of the Long Thanh International Airport project.
The corporation has prepared a project outline and estimated costs of thefeasibility study. It will soon launch the bidding process for selecting aconsultant for the feasibility study.
The company has carried out evaluations of the architectural designs for theairport and collected feedback from experts and public in accordance with thelaw, the meeting heard.
ACV is waiting for the Government’s direction on selecting the architecturaldesign to complete the project feasibility study.
Deputy Minister of Transportation Le Dinh Tho said at the meeting that landclearance for the Long Thanh airport project will be completed by the end ofthis year. The project is expected to star in 2019 and be completed in 2025.
According to ACV’s Board of Directors, 2016 was the first year that thecorporation operated as a joint stock company. They said that with the effortsof leaders and all employees, ACV has completed its plans and even exceededtargets set out for 2016.
Last year, revenues earned by the parent company reached over 10 trillion VND,exceeding the planned target by 13.53 percent. Pre-tax profits, excludingprofits generated by exchange rate differences, topped 2.8 trillion VND, nearly2.4 times higher than the business plan.
In 2016, the company also focused on upgrading its infrastructure and beganoperating many aviation infrastructure projects on schedule, serving growingdemand in the aviation market.
ACV’s transportation capacity improved significantly and exceeded the annualplan. Total passengers it carried in 2016 reached 81 million, up 28 percentover 2015, exceeding the annual plan by 10.19 percent. Commodities and parceltransport reached 1.1 million tonnes, up 15 percent year-on-year, surpassing theannual target by 2.82 percent.
The total number of take-offs and landings was 557,000, up 24 percent,exceeding the annual target by 7.94 percent.
Total assets of the corporation, as of December 31, 2016, was valued at 45.1trillion VND, with short-term assets of 20.2 trillion VND and long term assetstotalling 24.9 trillion VND. Total liabilities amounted to 21.1 trillion VND,down 2.3 trillion VND from April 1, 2016, when ACV officially began operationas a joint stock company.
The corporation’s short-term debts stood at 6.6 trillion VND and long-termdebts at over 14.5 trillion VND, most of it in Japanese yen lent by the JapanInternational Cooperation Agency (JICA) for the project to construct aninternational passenger terminal at the Tan Son Nhat International Airport andterminal T2 at the Noi Bai International Airport.
In the first six months of this year, ACV’s revenue was estimated at nearly 7.3 trillion VND, or 55 percent ofthe yearly plan, with its post-tax profit reaching 2.3 trillion VND,equivalent to 68 percent of the target.
Regarding the plan to list on the HCM City Stock Exchange (HOSE), the meetingheard that the corporation officially went into operation as a joint-stockcompany only from April last year.
As of now, its airfields were still underthe State management. The State’s auditing agency proposed that the Governmentmakes a quick decision on the management of these areas. Conditions were notsufficient for the listing. Managers said ACV would promptly work onthis issue and soon inform shareholders.
On stock sale negotiations with the French corporation Aéroports de Paris(ADP), the meeting heard that ACV plans to sell 20 per cent of its shares toits strategic shareholder. However, the two sides have yet to reach an agreement.Currently, ACV is waiting for the final decision from the Government forfinalising the deal.
ACV will soon complete a plan to withdraw capital from two affiliates: Vietnam AirServices Company (VASCO) and the Southern Airports Services Joint Stock Company(SASCO).-VNA
VNA
