Schiphol pays Dnata almost 20 million euros in compensation
relocation of freight warehouses
Schiphol Group pays freight forwarder Dnata the generous amount of 19.3 million euros as ‘financial compensation’ for the more or less forced relocation of the company from Schiphol Center to the freight area at the airport, Southeast. This is stated in the annual report submitted in the spring of Schiphol’s largest neutral goods handling (550,000 tonnes) for the ruined financial year 2020/2021.
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Slightly hidden on one of the last pages of the financial statements, Dnata, part of the Emirates Group from Dubai, mentions the ‘termination agreement’ with the real estate subsidiary Schiphol Real Estate in connection with the move to new housing of 60,000 square meters. at Schiphol Southeast. This move to the future Cargo Building 17 is necessary, among other things, because the current handling sheds (50,000 square meters) of Dnata at Schiphol Center will provide space for the expansion of the airport’s runways.
That relocation is scheduled for June 1, 2024, and if ‘all the conditions of the Treaty are met’, the freight forwarder will receive € 19.3 million in relocation compensation. An amount of 1.2 million euros has already been transferred as an incentive during the financial year 2019-2020, the management of Dnata states in the annual report.
The remaining amount of DKK 18.1 million. EUR will be transferred “on the basis of the agreed clauses” between the two parties. If Dnata does not comply with the agreements, the action agent must repay the funds received to Schiphol Real Estate by means of a ‘clawback agreement’, it is further stated.
In total, Dnata is investing 200 million euros in the new freight center, which will have an annual capacity of 850,000 tonnes. That’s about 300,000 tons more than the company handled last year. The investment amount can seem like a lot, but it largely consists of the rent that the action broker has to pay annually to the real estate company and rents out Schiphol Real Estate under a twenty-year lease.
The financial compensation of almost 20 million euros from Schiphol for the move is not the only unexpected in DNA’s annual accounts. Eg. the freight forwarder realized a book profit of 168,147 euros on the sale of its minority stake in the freight platform Cargonaut (7%) to the Schiphol group. This sale has taken place under pressure from the customs authorities, who for security reasons no longer found it acceptable that Cargonaut, which handles, among other things, confidential freight data, was partly in the hands of private parties in the air freight sector. DNA’s interest in the freight platform was on the company’s book for around 45,000 euros.
With the sharp increase in revenue, the book profit ensured that Dnata, which employs around 510 people at Schiphol, again wrote black numbers in the broken financial year 2020/2021 with a net profit of 1.7 million euros against a net loss of 3.2 million euros . in 2019/2020. This put an end to a number of negative results that have given the company a total net loss of 10.4 million euros in recent years.
These previous losses were mainly due to ‘disappointing results’ in 2019/2020 in the Belgian subsidiary at Brussels Airport, which was able to get back on track financially after a major reorganization and accounted for a significant increase in the financial year 2020/2021 . turnover of almost 12 million euros.
Dnata Cargo’s profit before tax amounted to EUR 2.2 million in 2020/2021, compared to a significant negative result of EUR 4.3 million in the financial year 2019/2020. Revenue increased by almost 11 million euros to 72.4 million euros. Of this, almost 66 million (+16 million euros compared to 2019/2020) came from freight handling and 2.8 million euros from handling e-commerce packages. The remaining revenue (2.9 million euros) can be attributed to the passenger activities
The management of Dnata points out in an explanation that 2020/2021 was a particularly ‘hectic year’ due to the corona pandemic, but that the demand for cargo space worldwide remained ‘strong’. In addition, the handling agent also benefited from additional flows, such as protective medical supplies, to combat the pandemic.
No corona support
The higher income thanks to the extra freight volumes (+ 20% during the first half of the financial year 2020/2021) also resulted in the freight company being able to ‘fully repay’ a loan of 2.5 million euros to the housing bank ING and not having to pay corona support. to ask the government about the freight activities.
Although liquidity was also ‘improved’ in the ruined financial year, according to management, there was still ‘a negative working capital’ of more than 3 million euros over 2020/2021.
Dnata again expects to be able to deliver good figures for the just-concluded financial year 2021/2022, even though last year it lost a customer at Malaysia Airlines, which accounted for an annual turnover of 1.3 million euros. The company bases this positive forecast on the further increase in freight volume (13%) over the first half of the ruined financial year 2021/2022.