Covid-19 Lockdown Cuts NAHCO’s Profit By N415.1m In 2020
The Nigerian Aviation Handling Company has lost 57.87 per cent of the N717.19m profit it recorded in 2019 to the Covid-19 induced shutdown of the country’s airports in March 2020.
The Company on Wednesday disclosed in its financial statement for the full year 2020 that it managed to record a profit of N302.13m in 2020, down by N415.1m from the N717.19m posted in 2019
The company which provides aviation cargo, aircraft handling, passenger facilitation, crew transportation, refueling and aviation training services from its base at Murtala Muhammed International Airport saw a slide in its business with the ban of flight operation .
The ban was later lifted fully for both domestic and international flights operations in July and December 2020 respectively.
Consequently, the company said its revenue fell 28.7 per cent to N7.13bn in 2020, from N9.99bn in 2019.
NAHCO serves over 35 airlines throughout seven airports across Nigeria and handles about 70 per cent of domestic and foreign airlines operating into the country.
The company’s total asset also fell to N13.75bn from the N14.71bn recorded in 2019.
NAHCO said, “The Group continues to grapple with uncertainty over the collectability of contract receivables from specific customers.
“This condition became heightened by the impact of Covid-19 pandemic on the aviation industry which led to closure of airports and flight suspension/cancellation- a development that severely affected the airlines that constitute a significant part of the group’s customers.”
The company also said it had gross trade receivables of N2.14bn by the end of 2020 and an expected credit loss of N844m, an amount representing 39 per cent of the gross receivables.