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SYD, SYDNEY AIRPORT
ShareCafe Admin
post Posted: Sep 14 2021, 09:44 AM
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New article up.

Takeoffs and Bumpy Landings in the Local Airspace

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Admin

 
ShareCafe Admin
post Posted: Aug 17 2021, 10:15 AM
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New article up.

Sydney Airport Knocks Back Increased Bid

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nipper
post Posted: Jul 16 2021, 12:11 PM
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In Reply To: nipper's post @ Jul 5 2021, 09:35 AM

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As I write, Sydney Airport has announced a proposal from a consortium of infrastructure investors at $8.25 a share or around 23 times EBITDA in the last non pandemic impacted year (2019). Enduring the pain of abysmal returns on low risk assets is clearly becoming too much for many. We quote EBITDA multiples more because they are more readily available. In every case, they offer an overly flattering and unrealistic view of true available cashflow and actual multiples are higher. The $30bn price tag for the same airport for which Macquarie paid $5.6bn in 2002 is a stark illustration of how well highly geared investments in relatively unchanged assets has worked in recent decades. Declining interest rates allowed Sydney Airport to fund virtually all capital expenditure through increased debt, whilst streaming all the cash to equity holders and no tax to the government. ....

this is in a ShareCafe article
When Will the Music Stop? By Martin Conlon

https://www.sharecafe.com.au/2021/07/15/whe...the-music-stop/



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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nipper
post Posted: Jul 5 2021, 09:35 AM
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and a takeover lobbed for Sydney Airport... $22 B


QUOTE
The institutions behind the deal include IFM Investors, the giant fund manager part-owned by super funds, QSuper and Global Infrastructure Management.





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 11 2020, 02:32 PM
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Sydney Airport will raise $2 billion in equity to stay liquid through the COVID 19 pandemic after reporting a $51.8 million interim loss, and will not pay dividends in 2020. It made an interim profit of $199.8 million a year earlier.

Total revenue in the first half was $511 million, down 36 per cent. Its results include a $40.9 million doubtful debt provision, of which more than half was owed by Virgin Australia before it went into administration.

The airport's income was also hit by forking out $52.9 million in rent relief for retail and property tenants (only one third of airport stores were open in July). Aeronautical revenues tumbled 52 per cent to $173 million, while parking revenues fell 51 per cent to $38.1 million.

Before rent abatements, retail revenues fell 20 per cent over the half to $147.2 million, and property and car rental revenues were down 9.5 per cent to $108.9 million. Occupancy of the airport's hotels was running at 44 per cent in the six months to June.


More than 44 million passengers passed through Sydney Airport in 2019, but in the six months to June, it had only 9.4 million passengers.

The airport plans to cut operating costs by one third by March 2021 and it has scrapped planned spending on some projects including bathroom upgrades.

The equity raising will slash the airports pro forma net debt to $7.1 billion at the end of June from $9.1 billion, giving it liquidity of $4.6 billion including $1 billion of cash. The fully renounceable offer is priced at $4.56 per share, a 15 per cent discount to the closing price of $5.39 on Monday.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
alonso
post Posted: Jul 28 2020, 03:20 PM
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In Reply To: nipper's post @ Jul 27 2020, 01:41 PM

Personal & holiday travel will probably try to get back to normal as soon as the covid situation normalises here, subject to the limits that foreign countries remain under for who knows how long.
But business travel is the one I see as the big holdback. Companies that have and do become used to Zoom etc meetings and conferences could very well see travel costs as an easy target for cost cutting.
I don't know what proportion of air travel is taken up by business, but it must be a big chunk.
Another issue is that the climate lobby, having seen how business can operate remotely, might see it as an issue to campaign on.



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"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 


nipper
post Posted: Jul 27 2020, 01:41 PM
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Citigroup has a SELL rating on Sydney Airport, concurring that international travel is unlikely to resume anytime soon and warning investors that the high debt levels and falling revenues will put pressure on cash flow covenants. SYD had net debt of $8.6 billion at the end of 2019 with debt running at 6.6 times earnings

Sydney Airport chairman Trevor Gerber said in May that the company had enough liquidity to manage its operations until the end of 2021.

But analysts at RBC Capital Markets say the airport could come close to breaching default levels when its debt covenants are tested in December, and that banks could push it into an equity raising if it seeks covenant waivers



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 21 2020, 09:59 PM
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Analysts at Macquarie have warned that Sydney Airport's earnings may be hurt by Virgin's collapse into administration, but said a restructuring of the collapsed airline may allow domestic flight slots – which airlines book for landings and take-offs – to be opened up for international flights, which make more money for airports.

Aeronautical services accounted for nearly half of the airport's 2019 group revenues, contributing $739.3 million.

A Virgin restructure could also allow Sydney Airport to reorganise its terminals, Macquarie analysts said.

"Virgin’s potential restructure may allow for a reconsideration of T2 [the current Virgin hub] and its use with scope for Virgin moving to T1 [the international terminal] and Qantas using T2/T3 along with a down-sized T4 [a proposed new terminal] as the additional capacity is reduced."

Analysts do not expect most domestic flights in Australia to resume until October, and are forecasting international flights will not restart until January 2021.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
jacsar
post Posted: Apr 20 2020, 08:15 PM
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In Reply To: nipper's post @ Apr 20 2020, 04:14 PM





this says a lot.... https://wolfstreet.com/2020/04/19/munger-no...ocks-companies/

 
nipper
post Posted: Apr 20 2020, 04:14 PM
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And then there's Covid-19

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Australia’s biggest gateway, Sydney Airport, will borrow $850m and scrap its half-year dividend after recording a 97 per cent fall in passenger numbers this month, and warning of more of the same to come.

But in a surprising move, the airport has given its employees a “six month job guarantee” promising to preserve all jobs on full pay until October 1.

Domestic passengers plunged 97.4 per cent and international travellers were down 96.1 per cent in the first 16 days of April compared to the same period last year.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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