The rates ballast Enav
The numbers for the first nine months of 2023 from Enav, the flight assistance companycontrolled by the Ministry of Economy
High interest rates are having a negative impact on Enav's accounts. The effect is recorded in the consolidated income statement of the flight assistance companycontrolled by the Ministry of Economy with a decrease in profit.
Here are all the details that emerge from the report on the first nine months of the year at Enav.
The ENAV document highlights the increase in financial charges, "mainly due to the higher interest expense on variable rate bank debt which was affected by the increase in interest rates especially in the reference period". For this reason, the Enav group closes the nine months of 2023 with a consolidated net profit of 86.3 million euros, a decrease of approximately 5.5 million euros compared to the same period of 2022.
ENAV'S REVENUES INCREASE
Revenues increased by 7.2 percent (to 756 million); those from operating activities by 3.6%, to 740 million. The latter – as Il Sole 24 Ore notes – was affected by the balance component (the mechanism which provides for ENAV the partial recovery or partial restitution to the carriers of the effects deriving from the deviation between the air traffic foreseen in the tariff plan and the actual one) for 44.6 million. Revenues from the unregulated sector are stable at 26.6 million.
HOW ENAV'S COSTS ARE RISE
Costs have risen more than proportionately – Il Sole 24 Ore notes today – marking a +5.2% to 520 million, due to the «higher personnel costs also associated with the increased activities linked to the management of high traffic volumes airplane". Personnel costs amounted to 430 million euros, an increase of 7.3% also due to "the effect on 2023 of the renewal of the economic part of the collective labor agreement of the parent company and Techno Sky".
THE EFFECT ON MARGINS
The effect on margins is to keep them at the level of the first 9 months of 2022: Ebitda stands at 520 million and Ebit at 131 million. As mentioned, the company closes the nine months with a net profit of 86.3 million, down by 5.5 million on 2022, also due to the weight of the higher interest paid on debt due to the effect of interest rates.
DEBT
Net debt, however, presents an improvement compared to the end of 2022, with a balance of 329.9 million euros, down by 77.9 million. “The lower net financial debt is mainly due to the effect of the dynamics of collections and payments connected to ordinary operations which produced a positive cash flow, closely related to the resumption of air transport activities with consequent greater collections from the core business of the Parent Company ”, underlines the group.
THE CEO'S COMMENT
«The positive trend of the first nine months of 2023 confirms that the demand for air traffic on Italian skies is really strong – commented the CEO Pasqualino Monti (in the photo) -. The company is continuing with investments to modernize the airspace infrastructure, guaranteeing the usual levels of safety and quality of service. Even during the summer season, the most intense period for traffic volumes, we guaranteed excellent performances. Expansion and diversification on the unregulated market remains a central element in the group's industrial strategy."
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/i-tassi-zavorrano-enav/ on Wed, 15 Nov 2023 10:46:32 +0000.