MacroAsia spending over P820 million for expansion
MANILA, Philippines — Aviation support services provider MacroAsia Corporation is spending about P820 million ($18.13 million) from 2014 to 2016 to fund new mining and water projects, catering facilities, and ground-handling equipment.
“The board approved an appropriation of P820 million ($18.13 million) for over 3 years starting 2014 to finance projects on mining, water, catering, and equipment needed,” MacroAsia Chief Finance Officer Amador Sendin said on the sidelines of the company’s annual stockholders’ meeting on Friday, July 17.
Asked for a breakdown, Sendin said P300 million ($6.63 million) of its capital spending budget for 2014-2016 is alloted to water projects; P100 million ($2.21 million) to new catering facilities; P50 million ($1.10 million) to ground-handling equipment; P50 million ($1.10 million) to a hangar extension; and the rest to mining projects.
Officials, however, did not elaborate further on these projects.
MacroAsia president Joseph Chua said that funding of his company’s capital spending budget for 3 years is “100% internally generated.”
“We’ve not tapped on our credit lines yet, but hopefully soon when we start construction of mining and water projects. If we get the permit, then we are ready to move,” Chua said.
In 2014, MacroAsia reported a net income of P122 million ($2.70 million), reflecting a turnaround into profitability from the past two years’ losses of P161 million ($3.56 million) and P180 million ($3.98 million) in 2013 and 2012, respectively.
The turnaround was because its major subsidiaries – maintenance, repair and overhaul (MRO), catering and ground handling – posted stronger operating and financial results last year.
Guarded optimism for 2015
“Notwithstanding the growth indicators, management looks at 2015 with guarded optimism,” Chua said.
He said his company's catering and ground handling businesses remain vulnerable to the health scare arising from the Middle East Respiratory Syndrome coronavirus (MERS-CoV) and Ebola virus disease.
"Our revenues will be affected by passengers and flight movements if health reasons curtail the airline industry," Chua said.
While a new administration will take office next year, when the national elections will be held, MacroAsia foresees no progressive change in the government's policies and directions on mining.
"Our Infanta Nickel Project, which entails the re-opening of our old mine, will continue to be under care and maintenance. In the meantime, we are working to complete our operating permits to start construction," Chua said.
LTP remains to be the biggest investment of MacroAsia to date. It is a joint venture between MacroAsia which owns 49%, and Lufthansa Technik AG of Germany which holds 51%.
Among LTP's customers are Philippine Airlines, Qatar Airways, Hawaiian Airlines, China Eastern, Air Atlanta, Cebu Pacific, Air Nugui, Etihad Airways, Qantas, JAL, and China Airlines. — Rappler.com