SET Suspends NOK as Auditors Expresses No Conclusion on 1Q20F

The Stock Exchange of Thailand (SET) posted a suspend and notice pending (SP and NP) signs on Nok Airlines Public Company Limited (NOK) on August 14, 2020, as the company’s auditors do not express an conclusions on financial statements ending March 31, 2020 and the SEC may require the company to amend its financial statements. Regarding the announcement, SET will lift the SP and NP signs on August 17, 2020.

 

NOK today (August 14) has reported the quarterly financial for the first quarter of 2020    through the Stock Exchange of Thailand as follows;

The outbreak of Covid-19 causes adverse impacts on the global airline industry as a result of travel restrictions in both international and domestic markets. As a consequence, NOK was forced to temporarily suspend all international flight operations. This results in significant reduction in the company’s revenue while having to bear the burden of the same level of fixed costs. 

 

As a result, the net loss in the first quarter of 2020 is 2,330.05 million Baht, increased from the same period of prior year which was reportedly 304.16 million Baht or further loss by 666.07%. 

 

The company’s revenue during the quarter was 2,614.21 million Baht which decreased by 24.64% from the same period in 2019. This is owed to the Covid-19 situation. NOK had an operating cost of 6,986.28 million Baht compared to 3,750 million Baht of the same period in 2019. The major increase from 2,402.10 million Baht of expected credit loss and 1,054 million Baht of unrealized exchange gain/loss from the implementation of the 16th financial report standard for lease contract, cost absorption, and allowance allocation for Nok Scoot Co.,Ltd which ceased trading on 26th June 2020 as per Nok Scoot’s executive meeting.

 

As of 31 March 2020, NOK had total liabilities of 36,286.36 million Baht or increased by 94.68% from the end of 2019, which is attributable to asset’s right of use amounting at 16,532.15 million Baht.