Stock market announcement
Copenhagen, November 9 2021
The Board of Directors today approved the interim report for the period January 1 to September 30, 2021.
SUMMARY OF THE FIRST NINE MONTHS FROM 2021
The growth in passenger numbers over the summer and the receipt of DKK 120 million from government support programs, means that CPH closed the third quarter with a pre-tax profit of DKK 77.2 million and a loss. before tax of DKK 773.6 million for the first nine months. from 2021.
A total of 3.8 million passengers passed through Copenhagen Airport terminals during the third quarter, and the traffic volume in September stood at 46.2% of the volume in the same month of 2019, last year of pre-pandemic normality. Air travel began to make a comeback in Europe over the summer, supported by Covid passports, vaccines, easing restrictions and underlying travel demand.
As European traffic returns, things are quite different for long-haul intercontinental routes to the United States or Asia, for example. The number of passengers on these routes was 13% from 2019 levels, down from 2.9 million to 0.4 million.
Travel restrictions are largely lifted in Denmark, and the United States and Thailand reopen for tourism and travel in November. The United States is one of the most important markets in the world. Before the coronavirus crisis, up to one million people traveled on roads from the United States to Denmark each year. It is essential for CPH’s status as a hub that transfer traffic is restarted, so that passengers from the Nordic, Baltic and Northern European countries can fly via Copenhagen to destinations in North America and Asia.
Loans Ddue to the pandemic, now at 2.2 billion Danish kroner
Despite the increase in passenger numbers during the summer, the first months of the year continue to weigh on performance from 2021 to date. Due to COVID-19, CPH had to draw DKK 129.8million on its facilities to fund its operations in the third quarter
Revenue was down 67.5% from the first nine months of 2019, to DKK 1,073.7 million (compared to the same period of 2020, revenue was down 19.0%) . For the third quarter, revenue totaled DKK 625.7 million, a decrease of 47.8% compared to the third quarter of 2019.
In May, CPH negotiated an extension of its DKK 6 billion credit facility until August 2023. At the same time, the current temporary exemption from certain debt conditions was agreed with existing lenders until end of 2022. Liquidity is essential in a severe crisis. , like the one CPH has been grappling with since March of last year. Currently, CPH has had to draw DKK 2.2 billion on its credit facilities in order to keep the airport operating.
Green transition under pressure
At CPH, ambitions remain intact for the green transition of aviation. In 2019, Copenhagen airport was certified carbon neutral under the Airport Carbon Accreditation program. The aim is for the airport to be already emission-free by 2030.
The green transition is a particular challenge at the moment as airlines and airports are under extreme financial pressure. It is crucial that any future levies imposed on air travel are spent specifically to support a sustainable aviation transition. In this context, the Aviation Climate Partnership has proposed to charge around DKK 30 per plane ticket and channel the money raised into a climate fund to promote competitive green fuels products that can help create a new industrial adventure for the Denmark in combination with efforts to develop aeronautics.
- The number of passengers at Copenhagen Airport was 5.2 million in the first nine months of 2021, down 22.2% from the same period of 2020 due to the effect of the pandemic of COVID-19. The number of locally departing passengers was 2.3 million (14.1% lower than last year), while connecting passengers were 0.3 million (47.6% lower year-on-year). latest).
- Revenues amounted to DKK 1,073.7 million (2020: DKK 1,325.0 million), a decrease of 19.0% compared to last year.
- EBITDA was similarly affected and amounted to a profit of DKK 121.3 million (2020: profit of DKK 285.0 million), a decrease of DKK 163.7 million compared to Last year.
- EBIT was a loss of DKK 654.8 million (2020: DKK 366.4 million loss), corresponding to a decrease of DKK 288.4 million.
- Net financing costs amounted to DKK 118.8 million, which is DKK 31.6 million higher than the same period of 2020 due to an increase in committed credit facilities and the recycling of financial costs amortized in 2021.
- Profit before tax decreased from DKK 320.0 million to a loss of DKK 773.6 million (2020: loss of DKK 453.6 million).
- Capital investments (excluding Comfort Hotel contribution) amounted to DKK 420.1 million in the first nine months of 2021 (2020: DKK 1,229.0 million). The investments included the expansion of Terminal 3, construction of a multi-storey car park, new baggage facilities, runway maintenance, various IT systems, as well as various upgrades and maintenance works.
The future course of the COVID-19 pandemic remains uncertain. Regulations or other limitations restricting international travel can still have a significant negative effect on the aviation industry as well as on passenger numbers.
Revenue is primarily passenger-generated and therefore remains equally uncertain, while CPH’s cost base for the rest of the year is largely fixed.
This uncertainty is reflected in the range of the outlook for pre-tax earnings. Based on current conditions, management expects a pre-tax loss for the entire year of between DKK -800 million and DKK -700 million.
Capital expenditure for the year is expected to be DKK 550-600 million.
Dividends to shareholders have been suspended for the time being due to the financial situation and compensation conditions of Danish government support programs. In addition, the Danish Kroner 6 billion credit facility agreement and loan covenants waiver agreements with existing lenders, which were concluded in May 2020, have been extended and, in this regard, CPH s ‘is committed not to pay dividends until August 22, 2023.
P.O. Box 74
2770 Kastrup, Denmark
Phone. : +45 3231 3231
Email: [email protected]
CVR n ° 14 70 72 04
CPH Q3 2021 announced on the Copenhagen Stock Exchange