In the third quarter of 2014 Shanghai Airport Authority (SAA), a state-owned enterprise that operates Shanghai’s Pudong (PVG) and Hongqiao (SHA) International Airports, had total revenue of 1.525 billion RMB, a 7.79% drop from the same period last year. Profit contributing to shareholders was 588 million RMB, a 3.68% drop from the same period last year.
In the first three quarters of 2014, SAA had total reported revenue of 4.274 billion RMB, a 9.98% drop from the same period last year. Operating costs were 2.472 billion RMB, an 18.66% increase from the same period last year. Profit contributing to shareholders was 1.686 billion RMB, a 7.20% increase from the same period last year. Profit on shares was 0.82 RMB per share, a 7.89% increase from the same period last year.
A rise in operating costs is the main reason for the drop in SAA’s profits. SAA’s operating costs in 2014 Q3 were 998 million RMB, an increase of 30.30% from the same period last year. From 2009 SAA’s spending has dropped quarter by quarter. In Q3 of 2014, the company’s financial expense was -31.3339 million RMB, compared to -7.6150 million RMB in Q3 of 2013. This is a drop of 30.5724 million RMB or equal to 4% of SAA’s 2014 Q3 profit before taxes.
However, income from investment has been rapidly increasing. In the Q3 of 2014 SAA’s reported income from investment was 177 million RMB. This is a 28.8725 million RMB increase from the 149 million RMB in the Q3 of 2013.(Translation by David)
