Sydney Airport withdraws capital expenditure plan

Sydney Airport withdraws capital expenditure plan

With no non-citizens or non-residents allowed into the country, coupled with heightened restrictions on domestic travel, Australia's largest airport is scaling back.

Sydney Airport (ASX: SYD) announced today it no longer expected to implement its previous capital expenditure forecast of $350-450 million in 2020.

The airport's entire capital expenditure program is under review with the objective of only continuing with critical projects and deferring less critical until there is more clarity on the persistence of current travel impacts.

"Last year we demonstrated strong operating cost control. We are accelerating this focus in the current environment, and we are eliminating all discretionary spend in order to keep operational costs to a minimum," the company said.

"This includes working with our airline and other business partners to optimise the safe and secure facilitation of our passengers at a lower cost.

"Based on the information presently available to us we are confident in Sydney Airport's strong balance sheet and liquidity position."

Between Sydney Airport's cash reserves, undrawn bank facilities bond market debt, it has around $2 billion in available funds.

Updated at 10:43am AEDT on 23 March 2020.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Two Melbourne-made COVID-19 vaccines to launch Phase 1 trials

Two Melbourne-made COVID-19 vaccines to launch Phase 1 trials

Two COVID-19 vaccine candidates created by the Peter Doherty Instit...

WA to ease COVID restrictions as ICU numbers remain lower than predicted

WA to ease COVID restrictions as ICU numbers remain lower than predicted

The Western Australian government will ease its Level 2 restriction...

100 million doses per year: Moderna to construct mRNA manufacturing facility in Melbourne

100 million doses per year: Moderna to construct mRNA manufacturing facility in Melbourne

Up to 100 million Australian-made mRNA vaccines will be produced in...

“We’re ready to welcome the world back”: NZ reopening to vaccinated Aussies on 12 April

“We’re ready to welcome the world back”: NZ reopening to vaccinated Aussies on 12 April

Australian tourists will be welcomed into New Zealand without havin...