This result was a reflection of very satisfactory returns
from the company's commercial operations.
The reported profit also includes a net after tax gain on
the revaluation of the company's investment property portfolio of
$4.1m. Excluding the impact of this revaluation gain, CIAL's
operating profit after tax of $15.5m was 30% ahead of budgeted
CIAL has declared a final dividend for the year of 7.65
cents per share, bringing the total dividend for the year to 15.15
cents or $8.73 million.
Addressing the company's AGM this evening, CIAL Chief
Executive Jim Boult said the events of the past two years have
inevitably taken a toll on passenger numbers. Compared to the year
ended June 30 2010, the last full financial year before
earthquakes, CIAL has lost 448,814 passengers.
The loss of 7.5% of CIAL's passenger base since the 2010
financial year has cost the company revenue from a number of
sources associated with passenger throughput, in particular
terminal concessions and car parking.
The company's operational costs are higher as a result of
the earthquakes, including thorough testing of every building on
campus. In all, earthquake related issues have cost the company
approximately $15 million at the EBITDA level in the 2012 financial
Mr Boult told shareholders the current year was always
going to see a drop in profitability for the company, because of
costs involved in financing the new terminal construction. Prior to
the 2012 financial year, the cost of funds had been capitalised
against the project. The Integrated Terminal Project accounted for
$28.2M of the company's total capital expenditure of $63M. The
development is due to be completed March 2013 and to come in within
one to two per cent of the budget set in 2008.
The past financial year also saw the acquisition and
successful integration and operation of the International Antarctic
Centre with the business performing ahead of
The company's commercial opportunities and property
developments continued to perform strongly. Highlights
included the completion of the Temporary Office Park housing five
short-term tenants, substantial completion of buildings for Hewlett
Packard and Landpower in Dakota Park and the construction of a
McDonald's restaurant. Planning approval was also secured for the
Spitfire Square retail development. Last week , Gen-i also
announced it will partner with CIAL on its new data
Mr Boult said CIAL's greatest contribution to the
redevelopment of Christchurch will be through the retention and
growth of aeronautical service to the city. He says the company is
in discussions with a number of airlines, both existing and new, on
potential new services.
He pointed to the recently announced new International Air
Transport Policy Statement as a boost to those
"The new statement gives favourable consideration to
airlines offering new services to and from Christchurch, to assist
with the region's recovery. That aspect alone effectively creates
'Open Skies' over Christchurch until 2017 and is invaluable for the
"It means any airline can take advantage of this
especially supportive policy to bring the world's travellers here -
and is good news for exporters and importers as well."