WEDNESDAY, APRIL 29, 1992
LAST
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MTRC NETS $67M PROFITS FOR THE FIRST TIME
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THE MASS TRANSIT RAILWAY CORPORATION (MTRC) FOR THE FIRST TIME YEAR REGISTERED A NET PROFIT OF $67 MILLION EVEN WITHOUT ANY CONTRIBUTION FROM PROPERTY DEVELOPMENTS, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MR MACLEOD SAID THIS HAD BEEN ACHIEVED TWO YEARS EARLIER THAN PREVIOUSLY FORECAST. THE MTRC RECORDED A NET LOSS OF $108 MILLION IN 1990.
TABLING THE ANNUAL REPORT AND ACCOUNTS OF THE CORPORATION FOR THE YEAR ENDING DECEMBER 31, 1991, THE FINANCIAL SECRETARY POINTED OUT THAT IN 1991, THE MTRC CARRIED ABOUT 726 MILLION PASSENGERS LAST YEAR.
TOTAL REVENUE WAS $3,553 MILLION, 12 PER CENT HIGHER THAN
THAT IN 1990. TOTAL OPERATING COSTS ALSO INCREASED BY 12 PER CENT, OWING MAINLY TO RISING WAGES AND RAILWAY MAINTENANCE COSTS.
MR MACLEOD POINTED OUT THAT AT THE END OF 1991, THE CORPORATION'S LOANS AND FINANCE LIABILITIES STOOD AT $18.4 BILLION AND THE YEAR-END DEBT TO EQUITY RATIO WAS 2.7 TO 1.
"DESPITE THE TIGHT FINANCING ENVIRONMENT WORLDWIDE IN 1991, THE WAS ABLE TO RAISE FUNDS IN LOCAL AND OVERSEAS MARKETS SUCCESSFULLY.
MTRC
"THIS BEARS TESTIMONY TO THE HIGH REPUTATION THE MTRC CONTINUES ENJOY IN THE INTERNATIONAL FINANCIAL COMMUNITY, THE FINANCIAL SECRETARY SAID.
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NOTING THAT THE CORPORATION'S RESULTS LAST YEAR WERE CONSISTENT WITH ITS LONG-TERM FINANCIAL TARGETS, MR MACLEOD SAID BY THE TURN OF THE CENTURY, MTRC EXPECTED TO BE ABLE TO RETIRE ALL DEBTS ON EXISTING LOANS.
AFTER THE SIGNING OF THE MEMORANDUM OF UNDERSTANDING ON THE NEW AIRPORT AND RELATED PROJECTS, THE GOVERNMENT ENTERED INTO NEGOTIATIONS WITH THE MTRC ON THE FINANCING, CONSTRUCTION AND OPERATION OF THE AIRPORT RAILWAY.
APART FROM PROVIDING A FAST, EFFICIENT AND CONVENIENT RAIL LINK WITH THE NEW AIRPORT, THE AIRPORT RAILWAY WILL ALSO RELIEVE THE MTR NATHAN ROAD CORRIDOR WHICH IS ALREADY OPERATING CLOSE то CAPACITY DURING PEAK HOURS.
PROPOSED
MR MACLEOD SAID THE FINANCIAL SUPPORT THE GOVERNMENT FOR THE AIRPORT RAILWAY PROJECT SHOULD ENABLE THE CORPORATION ΤΟ BORROW ON ACCEPTABLE TERMS THE SUMS NEEDED TO FINANCE THE PROJECT.
THE PRINCIPAL CREDIT RATING AGENCIES HAD ALREADY INDICATED THAT THEY WOULD MAINTAIN THE MTRC'S EXISTING CREDIT RATINGS ON THE BASIS OF THE FINANCIAL SUPPORT PROPOSED, MR MACLEOD SAID.
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