Mozambique: Airports’ accounts remained in the red and marked by huge losses in 2021 – Carta

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Mozambique: Airports’ accounts remained in the red and marked by huge losses in 2021 – Carta

3:47 CAT | 15 Jun 2022

File photo: Carta

For public company Aeroportos de Moçambique (ADM), the 2021 economic year was, like the previous ones, fraught with large losses resulting from the company’s decline, a fact aggravated, in the year under analysis, by the prolonged impact of the Covid-19 pandemic.

In 2021, the company recorded estimated losses 431.6 million Meticais. On top of that, liabilities that year almost swallowed up the company’s total assets, valued at more than 38 billion meticais.

In the report, the new Chairman of the company Board of Directors, Américo Muchanga, indicates that the “production results achieved between January and December of 2021 were in deficit and were largely influenced by the restrictions imposed by the government in response to the third global Covid-19 wave.”

In fact, the company registered 1.2 million passengers, which represented an increase against the same period of the previous year, but a 44.1% reduction compared to 2019.

Regarding aircraft, the in 2021 company registered a movement of 42.4 thousand entries, representing an increase of 27.6% when compared to the same period in 2020, but a decrease of 36.3% when compared to 2019.

In terms of cargo movement, Mozambique Airports registered 10.9 thousand tons last year, an increase of 28.5% against 2020 and a decrease of 38.2% against the same period in 2019.

As for postal services, the company registered 497 tons in the year under review, representing an increase of 26.85 tons compared to 2020, but 7.3% below the 2019 figure.

With a 3.3% growth in turnover and favourable exchange rate differences resulting from the appreciation of the metical, company activities in 2021 were characterised by positive net income of 1.8 billion meticais. For Muchanga, this fact “represents reversing the trend of negative net results realised in the same period of 2020 in the order of negative 3.4 billion Meticais”.

However, despite the fact that in 2021 the company’s managers maintained strict discipline, contributing a 2% reduction of operating costs, containment measures were not enough to avoid the negative operating result (loss) of 431.6 million Meticais against the 957.7 million Meticais also negative results recorded in 2020.

For the verification of sustainability information in this report, ADM relied on the independent external verification of BDO, which sanctioned all financial reporting by the company.

Until December 31, 2021, the company’s total assets were estimated at 38.6 billion Meticais, against 35 billion Meticais in 2020. The company’s total liabilities recorded in 2021 stood at 37.8 billion Meticais against 36 billion Meticais accounted for in 2020. The company’s equity capital in 2021 was 820 million Meticais, against negative 975.7 million in 2020.

By Evaristo Chilingue

Source: Carta de Moçambique