Australia: Sydney Airport to raise $2b, swings to $53m loss on COVID-19 woes

Sydney Airport has announced it will raise A$2b in fresh capital to firm up its pandemic-stressed balance sheet after revealing a $53m loss for the six months to June 30. The $53.6m loss compared with a $17.3m profit in the same half last year and was due to COVID-19 travel restrictions causing traffic to fall 56%, to 9.4m passengers for the period, the airport said Tuesday. Total passenger traffic in June was down to 5% of the level seen in the same month last year. Sydney Airport said it would use the $2b raising to “substantially” reduce its net debt, enhance its financial resilience, support its investment grade credit rating and increase liquidity. “Six months into the pandemic, there remains uncertainty as to how long it will take for aviation markets to return to pre-COVID-19 levels,” CE Geoff Culbert said. “Accordingly, Sydney Airport is taking further decisive action to strengthen its balance sheet and to help ensure it remains well capitalised to meet the challenges presented by an uncertain COVID-19 operating environment, and to ensure it is positioned for growth in the future." Culbert said it would raise the $2b through a renounceable entitlement offer. which was the fairest structure for all investors, particularly retail investors. Shareholders who participate in the raising will not be diluted, he said. <br/>