September 2016
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CORPORATE
2016 Interim Results
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CORPORATE
Swire PacificSwire PropertiesCathay Pacific AirwaysHAECO

Swire Pacific Limited IR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$1,285 million or 27% to HK$3,548 million. The decrease in underlying profit reflects worse results from all divisions and the absence of profits from sales of units at OPUS HONG KONG recorded in the comparative period.

Attributable profit from the Beverages Division decreased by 26% to HK$336 million. Overall sales volume fell by 7% to 511 million unit cases. In Mainland China, the business was affected by slower economic growth and competition from new types of beverages. Sales volumes and profits fell in Mainland China, Hong Kong and Taiwan. The business in the USA continues to grow, with existing and new territories doing well. In February, a letter of intent was signed with The Coca-Cola Company ("TCCC") to acquire additional territory rights in the states of Washington, Oregon and Idaho. In July, the acquisition from TCCC of distribution rights and assets in Arizona and Albuquerque, New Mexico was completed.

Swire Pacific Offshore ("SPO") recorded an attributable loss of HK$260 million. The offshore support services market remains weak because of reduced spending on exploration and production activity and an oversupply of vessels. SPO's overall average fleet utilisation decreased by 13.2 percentage points to 62.4% and average daily charter hire rates fell by 13% to USD24,400. Cost control measures, including the stacking and sale of vessels, continue to be implemented.

The attributable profit of the Trading & Industrial Division was HK$117 million, a marginal decrease compared with the first half of 2015. There were significantly higher profits from Akzo Nobel Swire Paints. Losses from the cold storage operations were higher. Swire Foods purchased the 35% interest it did not own in Chongqing New Qinyuan Bakery Co. Ltd during the first half of the year.



Watch videos 
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interiml Results Analyst Briefing

2016 Interim Results Analyst Briefing
 

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)

Swire Properties Limited IR chart


Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$379 million from HK$3,938 million in the first half of 2015 to HK$3,559 million in the first half of 2016. The decrease in underlying profit in the first half of 2016 principally reflected lower trading profits from the sale of luxury residential properties in Hong Kong.

Underlying profit from property investment decreased slightly. This principally reflects a lower contribution from retail properties in Hong Kong and pre-opening expenses at Brickell City Centre in the USA. Aggregate gross rental income was little changed at HK$5,367 million. Gross rental income from office properties in Hong Kong and Mainland China and from retail properties in Mainland China grew slightly.

There was an operating profit of HK$525 million from property trading in the first half of 2016, compared to an operating profit of HK$1,025 million in the first half of 2015. Profits in the first half of 2016 largely arose from the handover of 226 pre-sold units at the Reach development in the USA and from the sales of units at the AREZZO development in Hong Kong.

The increase in operating losses of the hotel division principally reflects pre-opening expenses at EAST, Miami in the USA.



Watch videos
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing
Biannual Highlights 2016

Biannual Highlights 2016
 

 

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)

CX IR chart


The Cathay Pacific Group reported an attributable profit of HK$353 million for the first six months of 2016. This compares to a profit of HK$1,972 million for the same period in 2015.

The operating environment in the first half of 2016 was affected by economic fragility and intense competition. There was sustained pressure on revenues, reflecting suspension of fuel surcharges, weak currencies in some markets, weak premium class demand, particularly on long-haul routes, and a higher proportion of passengers transiting through Hong Kong.

The Group's passenger revenue in the first six months of 2016 was HK$33,413 million, a decrease of 7.8% compared to the same period in 2015. Capacity increased by 4.2%, reflecting the introduction of new routes and increased frequencies on other routes. Load factor decreased by 1.4 percentage points, to 84.5%. Revenue was adversely affected by the suspension (from February) of fuel surcharges, which remained suspended for the rest of the period despite a subsequent rise in fuel prices. Yield fell by 10.1% to HK54.3 cents, reflecting the suspension of fuel surcharges, strong competition and adverse currency movements. There was a significant reduction in premium corporate travel, particularly on long-haul routes.

The Group's cargo revenue in the first six months of 2016 was HK$9,415 million, a decrease of 17.2% compared to the same period in 2015. The cargo capacity of Cathay Pacific and Dragonair increased by 0.6%. The load factor decreased by 1.9 percentage points, to 62.2%. Tonnage carried decreased by 0.2%. Yield fell by 17.6% to HK$1.59, reflecting strong competition, overcapacity and the suspension (from April) of fuel surcharges.



Watch videos
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing
 

Other references
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)

HAECO IR chart


The HAECO Group reported an attributable profit of HK$1,111 million for the first six months of 2016, which included a gain of HK$805 million on disposal of the interest of Hong Kong Aero Engine Services Limited ("HAESL") in Singapore Aero Engine Services Pte. Limited ("SAESL"). This compares with a profit of HK$254 million for the equivalent period in 2015. Demand for airframe services provided by HAECO Hong Kong was less in the first half of 2016 than in the first half of 2015. Line services benefited from increased aircraft movements and more work being done per movement. More component maintenance manhours were sold in Hong Kong.

The operating profit of HAECO ITM Limited increased as services were provided for more aircraft, but increased finance charges resulted in reduced attributable profits. The profits of HAESL increased. More engines were overhauled and more work was done per engine. HAECO Americas made a loss in the first half of 2016 similar to that in the first half of 2015. The airframe services performance was better, but fewer seats were sold.

The pre-tax profit of HAECO Xiamen decreased in the first half of 2016 compared with the first half of 2015. Demand for its airframe services was weak. Its post-tax profit improved as a result of a lower tax rate. Taikoo Engine Services (Xiamen) Company Limited ("TEXL") performed well, with more engines having been overhauled and more component repair work. Taikoo (Xiamen) Landing Gear Services Company Limited ("HAECO Landing Gear Services") incurred a loss comparable to the first half of 2015. The overall contribution from the Group's other activities in Mainland China improved.



Listen to the webcast
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing (audiocast)

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)
Swire Pacific

Swire Pacific Limited IR chart

Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$1,285 million or 27% to HK$3,548 million. The decrease in underlying profit reflects worse results from all divisions and the absence of profits from sales of units at OPUS HONG KONG recorded in the comparative period.

Attributable profit from the Beverages Division decreased by 26% to HK$336 million. Overall sales volume fell by 7% to 511 million unit cases. In Mainland China, the business was affected by slower economic growth and competition from new types of beverages. Sales volumes and profits fell in Mainland China, Hong Kong and Taiwan. The business in the USA continues to grow, with existing and new territories doing well. In February, a letter of intent was signed with The Coca-Cola Company ("TCCC") to acquire additional territory rights in the states of Washington, Oregon and Idaho. In July, the acquisition from TCCC of distribution rights and assets in Arizona and Albuquerque, New Mexico was completed.

Swire Pacific Offshore ("SPO") recorded an attributable loss of HK$260 million. The offshore support services market remains weak because of reduced spending on exploration and production activity and an oversupply of vessels. SPO's overall average fleet utilisation decreased by 13.2 percentage points to 62.4% and average daily charter hire rates fell by 13% to USD24,400. Cost control measures, including the stacking and sale of vessels, continue to be implemented.

The attributable profit of the Trading & Industrial Division was HK$117 million, a marginal decrease compared with the first half of 2015. There were significantly higher profits from Akzo Nobel Swire Paints. Losses from the cold storage operations were higher. Swire Foods purchased the 35% interest it did not own in Chongqing New Qinyuan Bakery Co. Ltd during the first half of the year.



Watch videos 
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interiml Results Analyst Briefing

2016 Interim Results Analyst Briefing
 

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)
Swire Properties

Swire Properties Limited IR chart


Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased by HK$379 million from HK$3,938 million in the first half of 2015 to HK$3,559 million in the first half of 2016. The decrease in underlying profit in the first half of 2016 principally reflected lower trading profits from the sale of luxury residential properties in Hong Kong.

Underlying profit from property investment decreased slightly. This principally reflects a lower contribution from retail properties in Hong Kong and pre-opening expenses at Brickell City Centre in the USA. Aggregate gross rental income was little changed at HK$5,367 million. Gross rental income from office properties in Hong Kong and Mainland China and from retail properties in Mainland China grew slightly.

There was an operating profit of HK$525 million from property trading in the first half of 2016, compared to an operating profit of HK$1,025 million in the first half of 2015. Profits in the first half of 2016 largely arose from the handover of 226 pre-sold units at the Reach development in the USA and from the sales of units at the AREZZO development in Hong Kong.

The increase in operating losses of the hotel division principally reflects pre-opening expenses at EAST, Miami in the USA.



Watch videos
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing
Biannual Highlights 2016

Biannual Highlights 2016
 

 

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)
Cathay Pacific Airways

CX IR chart


The Cathay Pacific Group reported an attributable profit of HK$353 million for the first six months of 2016. This compares to a profit of HK$1,972 million for the same period in 2015.

The operating environment in the first half of 2016 was affected by economic fragility and intense competition. There was sustained pressure on revenues, reflecting suspension of fuel surcharges, weak currencies in some markets, weak premium class demand, particularly on long-haul routes, and a higher proportion of passengers transiting through Hong Kong.

The Group's passenger revenue in the first six months of 2016 was HK$33,413 million, a decrease of 7.8% compared to the same period in 2015. Capacity increased by 4.2%, reflecting the introduction of new routes and increased frequencies on other routes. Load factor decreased by 1.4 percentage points, to 84.5%. Revenue was adversely affected by the suspension (from February) of fuel surcharges, which remained suspended for the rest of the period despite a subsequent rise in fuel prices. Yield fell by 10.1% to HK54.3 cents, reflecting the suspension of fuel surcharges, strong competition and adverse currency movements. There was a significant reduction in premium corporate travel, particularly on long-haul routes.

The Group's cargo revenue in the first six months of 2016 was HK$9,415 million, a decrease of 17.2% compared to the same period in 2015. The cargo capacity of Cathay Pacific and Dragonair increased by 0.6%. The load factor decreased by 1.9 percentage points, to 62.2%. Tonnage carried decreased by 0.2%. Yield fell by 17.6% to HK$1.59, reflecting strong competition, overcapacity and the suspension (from April) of fuel surcharges.



Watch videos
2016 Interim Results Press Briefing

2016 Interim Results Press Briefing
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing
 

Other references
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)
HAECO

HAECO IR chart


The HAECO Group reported an attributable profit of HK$1,111 million for the first six months of 2016, which included a gain of HK$805 million on disposal of the interest of Hong Kong Aero Engine Services Limited ("HAESL") in Singapore Aero Engine Services Pte. Limited ("SAESL"). This compares with a profit of HK$254 million for the equivalent period in 2015. Demand for airframe services provided by HAECO Hong Kong was less in the first half of 2016 than in the first half of 2015. Line services benefited from increased aircraft movements and more work being done per movement. More component maintenance manhours were sold in Hong Kong.

The operating profit of HAECO ITM Limited increased as services were provided for more aircraft, but increased finance charges resulted in reduced attributable profits. The profits of HAESL increased. More engines were overhauled and more work was done per engine. HAECO Americas made a loss in the first half of 2016 similar to that in the first half of 2015. The airframe services performance was better, but fewer seats were sold.

The pre-tax profit of HAECO Xiamen decreased in the first half of 2016 compared with the first half of 2015. Demand for its airframe services was weak. Its post-tax profit improved as a result of a lower tax rate. Taikoo Engine Services (Xiamen) Company Limited ("TEXL") performed well, with more engines having been overhauled and more component repair work. Taikoo (Xiamen) Landing Gear Services Company Limited ("HAECO Landing Gear Services") incurred a loss comparable to the first half of 2015. The overall contribution from the Group's other activities in Mainland China improved.



Listen to the webcast
2016 Interim Results Analyst Briefing

2016 Interim Results Analyst Briefing (audiocast)

Other references 
2016 Interim Report
2016 Interim Report (PDF)
2016 Interim Results Analyst Briefing presentation
2016 Interim Results Analyst Briefing presentation (PDF)
Bicentennial celebration
Bicentennial celebration
New book celebrates 150 years in China
The Taikoo Way - Swire in China for 150 years
Global CEO Council
Global CEO Council
Courtesy visits to senior Chinese officials
Merlin Swire meets with Mr Jiang Zengwei.
Forecasting industry trends
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Farewell to Davy Ho
Farewell to Davy Ho
Senior management appointments
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2016 Interim Results
2016 Interim Results
CORPORATE
PROPERTY
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BEVERAGES & FOOD CHAIN
MARINE SERVICES
IN THE COMMUNITY
AWARDS & RECOGNITIONS
Swire News September 2016
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