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2015 Annual Results
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Swire PacificSwire PropertiesCathay Pacific AirwaysHAECO

Swire Pacific Limited AR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$153 million or 2% to HK$9,892 million. The increase in underlying profit reflects higher profits from the Cathay Pacific Group, the Beverages Division and profits on the sale of eight units at OPUS HONG KONG, offset in part by a loss from the Marine Services Division. There were lower underlying profits from the HAECO Group and the Trading & Industrial Division, while the underlying profits of the Property Division were little changed.

The Beverages Division recorded an attributable profit of HK$976 million in 2015, an increase of 14% over 2014. This increase reflected better results in Hong Kong, Taiwan and the USA. Profits were slightly down in Mainland China. Overall sales volume increased by 4% to 1,083 million unit cases. Sales volume grew strongly in the USA, reflecting the inclusion of sales for a full year from territories in Colorado assumed in 2014. Volume increased slightly in Mainland China.

Swire Pacific Offshore ("SPO") recorded a loss of HK$1,285 million compared with a profit of HK$1,041 million in 2014. SPO's results were adversely affected by the difficult market conditions caused by the significant decline in the oil price. This put pressure on charter hire rates and utilisation. SPO also recorded impairment charges in relation to vessels of HK$743 million and in relation to the cancellation of shipbuilding contracts in Brazil of HK$485 million.

The attributable profit of the Trading & Industrial Division was HK$155 million, a 63% decrease when compared to 2014. The decrease principally reflected the termination of Taikoo Motors' Volkswagen and Škoda importerships in Taiwan at the end of 2014. There were also weaker results from Akzo Nobel Swire Paints, costs associated with developing the Swire Pacific Cold Storage business and losses from Swire Environmental Services. These were partly offset by higher profits from Swire Retail and Swire Foods, the latter principally reflecting a full year of results from the 65% interest in Chongqing New Qinyuan Bakery Co. Ltd.



Watch videos 
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
2015 Highlights

2015 Highlights
 

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)

Swire Properties Limited AR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$74 million from HK$7,152 million in 2014 to HK$7,078 million in 2015. Adjusted so as to exclude a loss of HK$229 million on disposal of four hotels in the UK, underlying profit increased to HK$7,307 million in 2015 from HK$7,152 million in 2014. The increase principally reflects good performances from the office portfolio in Hong Kong and from the retail portfolio in Mainland China. Underlying profit from property investment increased by 3%. There were higher profits from property trading, reflecting the sale of luxury residential properties in Hong Kong and the sale of offices in Mainland China. The hotel results were adversely affected by the loss on disposal referred to above and pre-opening costs at hotels in Chengdu in Mainland China and in Miami in the USA.

Gross rental income was HK$10,716 million in 2015 compared to HK$10,320 million in 2014. Rental income increased both in Hong Kong and Mainland China, as rental reversions were generally positive. In Hong Kong, office occupancy levels were firm. Retail sales in Hong Kong were adversely affected by reduced spending by tourists. In Mainland China, retail sales of luxury goods were weak. However, sales in the retail portfolios increased and demand for retail space was firm. Operating profit from property trading increased in 2015, principally because of the completion of sales of the majority of the units at the AREZZO development in Hong Kong.



Watch videos
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
2015 Highlights

2015 Highlights
 

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation (PDF)
2015 Final Results Analyst Briefing presentation (PDF)

CX AR chart

The Cathay Pacific Group reported an attributable profit of HK$6,000 million for 2015. This compares to a profit of HK$3,150 million in 2014. The business benefited from low fuel prices. The high passenger load factors experienced in the first half of the year continued in the second half. This reflected strong economy class demand. Premium class demand was not as strong as expected on some long-haul routes. Air cargo demand, which came under pressure during the second quarter of the year, remained weak in the second half. There was an improved contribution from the Group's subsidiary and associated companies.

Passenger revenue for Cathay Pacific and Dragonair in 2015 decreased by 3.5% to HK$73,047 million compared to the previous year. Capacity increased by 5.9% as a result of the introduction of new routes and increased frequencies on some other routes. The load factor increased by 2.4 percentage points to 85.7%. Strong competition, a significant reduction in fuel surcharges, unfavourable foreign currency movements and the fact that a higher proportion of passengers were connecting through Hong Kong put downward pressure on yield, which decreased by 11.4% to HK59.6 cents.

The Group's cargo revenue in 2015 decreased by 9.0% to HK$23,122 million compared to the previous year. This mainly reflected a reduction in fuel surcharges consequent upon lower fuel prices. Capacity for Cathay Pacific and Dragonair increased by 5.4%. The load factor decreased by 0.1 percentage point to 64.2%. Strong competition, overcapacity, unfavourable foreign currency movements and the reduction in fuel surcharges put pressure on yield, which decreased by 13.2% to HK$1.90.



Watch videos
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
 

Other references
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)

HAECO AR chart

The HAECO Group reported an attributable profit of HK$464 million in 2015. This compares to a profit of HK$573 million in 2014. The Group’s businesses are being adversely affected by new airframes, engines and components requiring less maintenance than older airframes, engines and components. Manhours sold by HAECO Hong Kong for airframe services increased by 13.8% in 2015. This reflected continued good demand and an increase in staff numbers. Manhours sold for line services in Hong Kong also increased in spite of a reduction in aircraft movements handled, as more work was done per movement. Manhours sold for components and avionics work in Hong Kong decreased. This reflected the retirement of Boeing 747-400 aircraft. The profits of Hong Kong Aero Engine Services Limited ("HAESL") decreased. Fewer engines were overhauled. This reflected the retirement of aircraft operating Trent 500 engines and a reduction in the frequency of scheduled maintenance of Trent 700 engines.

HAECO USA Holdings, Inc. ("HAECO Americas") recorded a higher loss in 2015 than in the 11 months following its acquisition in 2014. This principally reflected completion of large, high work scope airframe services contracts and their replacement with smaller work scope contracts. The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited (“HAECO Xiamen”) decreased in 2015. Fewer airframe maintenance manhours were sold and there was very little private jet work. Taikoo Engine Services (Xiamen) Company Limited (“TEXL”) overhauled more engines. However its after tax profits fell, as it no longer had tax losses to utilise. The results of the Group’s other joint ventures in Mainland China were better than in 2014.



Listen to the webcast
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing (audiocast)

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)
Swire Pacific

Swire Pacific Limited AR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$153 million or 2% to HK$9,892 million. The increase in underlying profit reflects higher profits from the Cathay Pacific Group, the Beverages Division and profits on the sale of eight units at OPUS HONG KONG, offset in part by a loss from the Marine Services Division. There were lower underlying profits from the HAECO Group and the Trading & Industrial Division, while the underlying profits of the Property Division were little changed.

The Beverages Division recorded an attributable profit of HK$976 million in 2015, an increase of 14% over 2014. This increase reflected better results in Hong Kong, Taiwan and the USA. Profits were slightly down in Mainland China. Overall sales volume increased by 4% to 1,083 million unit cases. Sales volume grew strongly in the USA, reflecting the inclusion of sales for a full year from territories in Colorado assumed in 2014. Volume increased slightly in Mainland China.

Swire Pacific Offshore ("SPO") recorded a loss of HK$1,285 million compared with a profit of HK$1,041 million in 2014. SPO's results were adversely affected by the difficult market conditions caused by the significant decline in the oil price. This put pressure on charter hire rates and utilisation. SPO also recorded impairment charges in relation to vessels of HK$743 million and in relation to the cancellation of shipbuilding contracts in Brazil of HK$485 million.

The attributable profit of the Trading & Industrial Division was HK$155 million, a 63% decrease when compared to 2014. The decrease principally reflected the termination of Taikoo Motors' Volkswagen and Škoda importerships in Taiwan at the end of 2014. There were also weaker results from Akzo Nobel Swire Paints, costs associated with developing the Swire Pacific Cold Storage business and losses from Swire Environmental Services. These were partly offset by higher profits from Swire Retail and Swire Foods, the latter principally reflecting a full year of results from the 65% interest in Chongqing New Qinyuan Bakery Co. Ltd.



Watch videos 
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
2015 Highlights

2015 Highlights
 

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)
Swire Properties

Swire Properties Limited AR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$74 million from HK$7,152 million in 2014 to HK$7,078 million in 2015. Adjusted so as to exclude a loss of HK$229 million on disposal of four hotels in the UK, underlying profit increased to HK$7,307 million in 2015 from HK$7,152 million in 2014. The increase principally reflects good performances from the office portfolio in Hong Kong and from the retail portfolio in Mainland China. Underlying profit from property investment increased by 3%. There were higher profits from property trading, reflecting the sale of luxury residential properties in Hong Kong and the sale of offices in Mainland China. The hotel results were adversely affected by the loss on disposal referred to above and pre-opening costs at hotels in Chengdu in Mainland China and in Miami in the USA.

Gross rental income was HK$10,716 million in 2015 compared to HK$10,320 million in 2014. Rental income increased both in Hong Kong and Mainland China, as rental reversions were generally positive. In Hong Kong, office occupancy levels were firm. Retail sales in Hong Kong were adversely affected by reduced spending by tourists. In Mainland China, retail sales of luxury goods were weak. However, sales in the retail portfolios increased and demand for retail space was firm. Operating profit from property trading increased in 2015, principally because of the completion of sales of the majority of the units at the AREZZO development in Hong Kong.



Watch videos
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
2015 Highlights

2015 Highlights
 

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation (PDF)
2015 Final Results Analyst Briefing presentation (PDF)
Cathay Pacific Airways

CX AR chart

The Cathay Pacific Group reported an attributable profit of HK$6,000 million for 2015. This compares to a profit of HK$3,150 million in 2014. The business benefited from low fuel prices. The high passenger load factors experienced in the first half of the year continued in the second half. This reflected strong economy class demand. Premium class demand was not as strong as expected on some long-haul routes. Air cargo demand, which came under pressure during the second quarter of the year, remained weak in the second half. There was an improved contribution from the Group's subsidiary and associated companies.

Passenger revenue for Cathay Pacific and Dragonair in 2015 decreased by 3.5% to HK$73,047 million compared to the previous year. Capacity increased by 5.9% as a result of the introduction of new routes and increased frequencies on some other routes. The load factor increased by 2.4 percentage points to 85.7%. Strong competition, a significant reduction in fuel surcharges, unfavourable foreign currency movements and the fact that a higher proportion of passengers were connecting through Hong Kong put downward pressure on yield, which decreased by 11.4% to HK59.6 cents.

The Group's cargo revenue in 2015 decreased by 9.0% to HK$23,122 million compared to the previous year. This mainly reflected a reduction in fuel surcharges consequent upon lower fuel prices. Capacity for Cathay Pacific and Dragonair increased by 5.4%. The load factor decreased by 0.1 percentage point to 64.2%. Strong competition, overcapacity, unfavourable foreign currency movements and the reduction in fuel surcharges put pressure on yield, which decreased by 13.2% to HK$1.90.



Watch videos
2015 Final Results Press Briefing

2015 Final Results Press Briefing
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing
 

Other references
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)
HAECO

HAECO AR chart

The HAECO Group reported an attributable profit of HK$464 million in 2015. This compares to a profit of HK$573 million in 2014. The Group’s businesses are being adversely affected by new airframes, engines and components requiring less maintenance than older airframes, engines and components. Manhours sold by HAECO Hong Kong for airframe services increased by 13.8% in 2015. This reflected continued good demand and an increase in staff numbers. Manhours sold for line services in Hong Kong also increased in spite of a reduction in aircraft movements handled, as more work was done per movement. Manhours sold for components and avionics work in Hong Kong decreased. This reflected the retirement of Boeing 747-400 aircraft. The profits of Hong Kong Aero Engine Services Limited ("HAESL") decreased. Fewer engines were overhauled. This reflected the retirement of aircraft operating Trent 500 engines and a reduction in the frequency of scheduled maintenance of Trent 700 engines.

HAECO USA Holdings, Inc. ("HAECO Americas") recorded a higher loss in 2015 than in the 11 months following its acquisition in 2014. This principally reflected completion of large, high work scope airframe services contracts and their replacement with smaller work scope contracts. The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited (“HAECO Xiamen”) decreased in 2015. Fewer airframe maintenance manhours were sold and there was very little private jet work. Taikoo Engine Services (Xiamen) Company Limited (“TEXL”) overhauled more engines. However its after tax profits fell, as it no longer had tax losses to utilise. The results of the Group’s other joint ventures in Mainland China were better than in 2014.



Listen to the webcast
2015 Final Results Analyst Briefing

2015 Final Results Analyst Briefing (audiocast)

Other references 
2015 Annual Report
2015 Annual Report (PDF)
2015 Final Results Analyst Briefing presentation
2015 Final Results Analyst Briefing presentation (PDF)
Liverpool Bicentenary
Liverpool Bicentenary
Senior management appointments
Senior management appointments
2015 Annual Results
2015 Annual Results
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