Skyway Aviation Handling Company, a provider of aviation ground handling services in Nigeria has recorded a 237.5 percent increase in its profits for the first nine months of 2023.
BusinessDay analysis showed the above development was largely driven by gains from foreign exchange.
The company’s financial statement showed that its profit rose to N2.13 billion in the first nine months from N0.63 billion in the same period of 2022.
The foreign exchange gain surged by 4,667 percent to N917.3 million, compared to N19.24 million.
The company also witnessed revenue growth, reaching N11.73 billion in the reviewed period, up from N8.59 billion in the same period of the previous year.
The statement highlighted that the primary sources of revenue for the company include foreign and domestic handling, cargo handling, and equipment rental. Additionally, revenue comes from rental income derived from investment properties.
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Revenue from contracts with customers amounted to N11.62 billion, and investment properties’ rental income stood at N112.9 million.
Other operating income, which includes items like electricity bills, scrap, and miscellaneous income, amounted to N73.8 million in the reviewed period, compared to N53.4 million in the corresponding period of 2022.
The finance section showed growth in both income and expenses. Finance income increased to N1.21 billion from N35.4 million in the same period of 2022, while finance expenses rose to N250.1 million from N16.9 million in 2022, driven by increased interest on loans.
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Administrative expenses also increased to N3.44 billion from N2.88 billion. The net cash inflow from operating activities experienced a decline of 47.6 percent, amounting to N859.6 million from N1.64 billion recorded in the same period of 2022, attributed to an increase in trade and other receivables.
Net cash outflow used in investing activities was negative, totalling N2.23 billion, compared to a negative amount of N2.02 billion in the same period of 2022, mainly due to an increase in the purchase of property, plant, and equipment.
Net cash inflow used in financing activities also recorded a negative amounting to N281.9 million, down from N283.12 million recorded in the same period of 2022.
The company’s cash and cash equivalents at the end of the period amounted to N2.74 billion, a significant increase from the N1.17 billion recorded in the same period of 2022.
