Med-View Airline Plc is among the early-bird companies that have released their audited annual reports and financial statements for the year ended December 31, 2017.
The results open to investing public show Med-View Airlines Plc earned N36.9billion in 2017 as against N26.04billion it earned in 2016 financial year.
On Tuesday January 31, 2017, Med-View Airline Plc listed its shares valued at N14.63billion by way of introduction on the Nigerian Stock Exchange (NSE).
Med-View became the third airline to list its shares on the Nigerian bourse after defunct ADC Airlines and Albarka Airlines. Many airlines in the Nigerian airspace have been facing high operating and finance costs which stifle their profit margins and most of their expansion plans.
Analysis of the company’s gross revenue shows that revenue from Hajj and Cargo Operations increased to N8.24billion from N5.61billion; revenue from domestic operations stood higher at N14.85billion from N11.69billion; while international/regional operations revenue increased from N8.7billion in 2016 to N13.86billion in 2017.
Med-View reported operating cost increased to N30.9billion from N21.8billion in 2016. A detailed look at the results show the cost for aircraft lease –Hajj Operation declined to N2.3billion from a high of N2.6billion in 2016. Cost for aircraft lease –local operation increased to N4.07billion from N1.3 billion in 2016.
The company’s aircraft maintenance cost in the review financial year increased N2.3billion from a low of N945.8million in 2016. Med-View Airlines Plc spent N10.3billion for aviation fuel (ATK) against N8.09billion the company spent on aviation fuel in 2016.
Handling Charges stood at N1.5billion from a low of N1.15billion in 2016. The Airline paid N1.2billion for catering services in 2017 against N985.4million paid for same service in 2016.
Statutory charges Med-View paid to Nigerian Civil Aviation Authority (NCAA), Federal Airport Authority of Nigeria (FAAN), and Nigerian Airspace Management Agency (NAMA) amounted to N4.4billion against N3.7billion in 2016. The airline paid N1.02billion government agency/royalty –Nigerian Aviation Handling Company Plc against N572.1million in 2016.
The airline gross profit for the year in revenue printed at N6.01billion against N4.14billion in 2016. Med-View Airline Plc reported N74.68million Foreign Exchange (FX) loss in 2017 against FX gain of N56.3million in 2016.
Administrative expenses reached record high of N4.179billion against N3.32billion in 2016. Finance Costs increased to N227.1million from N193.93million in the preceding financial year. This resulted from N88.4million paid as interest on loan in 2017 against N172.6million in 2016; while interest on overdraft amounted to N138.6million in 2017 from a low of N21.3million in 2016. This interest was charged to the Med-View Airline Plc on money the company withdrew in excess of its credit balance in bank.
Profit Before Tax (PBT) increased to N1.5billion in 2017 from N840million in 2016; while profit after tax for the year printed at N1.25billion from N772.85million in 2016. Basic Earnings Per Share (EPS) increased to 12.86 kobo in 2017 from 7.93kobo in 2016.
The board of Med-View Airlines proposed a dividend of 3kobo per share for the shareholders whose names appear on the register of members as at close of business on March 20, 2018.
The company listed on the Airlines subsector of the Nigerian Stock Exchange mainboard and its Market Capitalisation is currently in excess of N21.158billion while shares outstanding are 9.75billion units.
Trading information on the company’s share price shows it reached 52-week high of N2.17 per share as at Monday March 12, 2018; well up from a 52-week low of N1.43. Investors who took position in the stock when it listed at N1.50 per share must have earned good returns from capital appreciation.
Med-View was founded in 2007 as a charter airline, mainly operating Haji flights, and has offered domestic passenger services since November 2012. It has since expanded into regional/international and long haul scheduled passenger routes.
Funding, widened gap between the naira and dollar exchange rate, unfriendly regulations, high cost of aviation fuel, and that of infrastructure are some of the travails of domestic airlines, according to industry watchers.
Currently, most of the airlines owe Asset Management Corporation of Nigeria (AMCON) substantial amount of money beyond the capacities of their balance sheets, which reveals that it is getting increasingly difficult for investors to source financing options.
Iheanyi Nwachukwu
