Atlantia CEO warns of bankruptcy risk if concession revoked

Atlantia has come under fire after the collapse of a concrete bridge in the port city of Genoa in August 2018. (Reuters)
Short Url
Updated 05 January 2020

Atlantia CEO warns of bankruptcy risk if concession revoked

  • Atlantia has come under fire after the collapse of a concrete bridge operated by its Autostrade per l’Italia unit killed 43 people in the port city of Genoa in August 2018

MILAN: Atlantia risks going bankrupt if Italy’s government revokes its motorway licence with limited compensation, the infrastructure group’s CEO told an Italian daily on Saturday, adding an alternative compromise could be found.
Atlantia has come under fire after the collapse of a concrete bridge operated by its Autostrade per l’Italia unit killed 43 people in the port city of Genoa in August 2018.
The group, controlled by Italy’s Benetton family, manages the country’s biggest toll-road network, spanning 3,000 km.
The Rome government is considering revoking Autostrade’s motorway licence and recently passed measures that reduce compensation owed for the early termination of a contract if the concession holder is in breach of its obligations.
“With the revocation and a reduced payout we risk going bankrupt because we have outstanding credit lines worth €10.5 billion,” Atlantia CEO Roberto Tomasi told Corriere della Sera in an interview.
Late on Friday, credit rating agency Moody’s downgraded Atlantia for the second time in a month, pushing its debt further below the investment
grade threshold. “We need an accord that brings together public interest, the rights of those in business and the rule of law. Such an accord is possible and must be reached in the interest of (Atlantia’s) 7,000 workers, all stakeholders and Italians in general,” Tomasi said.
He declined to comment on a Corriere report saying Atlantia had proposed to the transport ministry to pay some €2 billion to rebuild the Genoa bridge, compensate the city and fund fresh investments, but had rejected a request to cut tolls by 5 percent in coming years.

FASTFACT

Atlantia is controlled by Italy’s Benetton family and manages the country’s biggest toll-road network, spanning 3,000 km.

“All I can say is that we’re ready to continue discussions with the government to avoid destroying a piece of the country’s industrial heritage,” he said.
After an emergency meeting called this week when parts of the roof of a highway tunnel managed by Autostrade fell off, the transport ministry announced a freeze of highway tolls for 2020.
Tomasi said that Atlantia was ready to discuss a toll system that tied hikes to investments carried out and not simply planned.
Motorway operators have appealed against such a system put forward by Italy’s transportation authority. The government, however, has moved to block
tariff increases until operators adopt new plans that conform to the new system.
Tomasi said that Atlantia would present a new business plan to 2023 in January with a focus on research and development, new management models and digitalisation.


Qatar’s top bank Q2 profit slides over virus

Updated 12 July 2020

Qatar’s top bank Q2 profit slides over virus

  • QNB net profit in the 2nd quarter plunged 25.8%

DOHA: Qatar National Bank, the largest lender in the Middle East, said Sunday its net profits for the second quarter sank over the impact of the coronavirus pandemic.
QNB net profit in the second quarter plunged 25.8 percent to 2.84 billion riyals ($780 million) compared to $1.05 billion in the same period a year ago, the bank said in a statement.
The first quarter net profit of QNB, which has operations in 31 countries including Turkey, Indonesia and India, dropped only slightly.
Its net income in the first six months of the year also dipped 13.6 percent to $1.76 billion from $2.04 billion a year ago, it said.
The bank said it increased the loan loss provisions by $320 million in the first half to safeguard itself from any adverse shocks from the pandemic, thus affecting its profitability.
Total assets rose 10 percent to $267 billion on June 30, making it the largest lender in the Middle East and North Africa in terms of assets.