AIH loss widens through Q3 on falling sales, higher costs

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Wednesday, November 30, 2016

Peruvian port and airport operator Andino Investment Holding posted a 32.7mn-sol (US$9.6mn) loss in January-September this year, as sales declined and costs rose.

The loss compares with a 31.8mn-sol loss in the first nine months of 2015, the Lima-based company said in a statement. Revenue slipped 0.9% to 475mn soles from 479mn soles in the same period of last year.

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Costs and operating expenses rose to 469mn soles in the period from 444mn soles, the company said. AIH posted a 158,000-sol FX gain compared with a 29.6mn-sol FX loss a year earlier, it added.

The company, which had US$129mn in debt through October 2016, said it paid off US$17mn in 2016 bonds and an US$800,000 Banco de Crédito del Perú (BCP) bridge loan. AIH, which raised funds from a 2012 IPO and bond sales to finance its plans, will see the bulk of its debt, or US$116mn, fall due in 2020.

AIH is studying the sale of its Penta Tanks unit after it lost Maple Ethanol as a client after it was taken over by Grupo Gloria in April 2015. AIH will limit capex this year to US$2mn in maintenance work, while the company sold a total of 25,000m2 of land around the port of Callao and plans to sell another 500,000m2.

AIH received 59.2% of its revenue from logistics, 40.2% from maritime services and 0.6% from its infrastructure units in the period.

The company is working on the Paita port expansion, the US$500mn Chinchero airport project, the US$15mn Terrano cargo facility at Lima's Jorge Chávez airport and the modernization of five regional airports.

The company has secured US$12mn in financing for the Terrano project from Inter-American Investment Corp, part of the Inter-American Development Bank (IDB).

President Pedro-Pablo Kuczynski, who took office July 28, said this month that his government has eliminated bureaucratic obstacles to the Chincheros project. Plans are also underway to expand all five regional airports operated by Aeropuertos Andinos del Perú, a JV with Argentina's Corporación América. Peru's foreign trade and tourism ministry is expecting 4.4mn tourists next year.

AIH, which last year completed a US$165mn first stage at Paita on the north coast, plans to install additional gantry cranes and a container dock after surpassing its annual capacity of 170,000 TEUs. Paita, which controls 9.5% of Peru's container market, is operated by Terminales Portuarios Euroandinos, a JV with Portugal's Mota-Engil.

Port traffic is growing 10% per year at Paita due to growing agricultural exports, according to the company. Peru, which posted US$5bn in agricultural exports in 2015, is the world's largest exporter of asparagus, oregano, paprika, organic coffee and organic bananas.