After listing on the Nigerian Stock Exchange, Medview Airlines, the only publicly quoted airline in Nigeria said its net profit for 2016 rose by 6%.
On a year on year comparison, Medview reported a net profit of NGN728 million compared to NGN7298 million recorded in the previous year.
Gross revenue for the airline in 2016 rose 84% on a year on year basis to NGN25,9 billion compared to NGN14 billion recorded in 2015.
However, here comes the snag in its result: Medview disclosed that its operating cost for the year rose to NGN21,8 billion compared to NGN10,7 billion in 2015.
This could attributed to the crash in the value of the Naira (NGN) to Dollar (USD). The airline must have paid triple the amount it used to pay for its insurance, lease contracts and other services denominated in Dollars.
Administrative expenses also rose to NGN3,3 billion compared to 2,4 billion in 2015.
The airline’s debt profile seems to be very low in comparison to its peers with huge debt burdens. Total borrowing at the end of the year was NGN967 million compared to NGN1,6 billion in 2015.
To collaters its borrowing plan, the airline said “The following properties were used as collateral for properties enjoyed by the company from financial institutions ( i) TLM over property located at 23 Olowu str., Ikeja, Lagos with OMV of N230,000,000 as at 17/09/2013 as value by Ajayi Patunola & Co (ii) Legal Mortgage over property located at 2/3 Samota Falola Street, Olowu Ikeja, Lagos with OMV of N195,500,000 as at 17/09/2013 as valued by J. Ajayi Patunola & Co”.
Medview said its total asset as at the end of the period rose to NGN15,4 billion compared to NGN12 billion in 2015. Total liabilities at the end of the period rose to NGN8,6 billion compared to NGN6,1 billion in 2015.
Total cash and cash equivalents at the end of the year fell NGN525 million versus was NGN607 million in 2015.
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