September 2017
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2017 Interim Results
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CORPORATE
Swire PacificSwire PropertiesCathay Pacific AirwaysHAECO

Swire Pacific Limited IR chart

The Swire Pacific Group's consolidated profit attributable to shareholders for the first half of 2017 was HK$12,138 million, HK$7,077 million higher than for the first half of 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$332 million or 9% to HK$3,880 million.

Adjusted underlying profit attributable to shareholders decreased by HK$721 million or 25% to HK$2,164 million. The decrease reflects weaker results from the Aviation, Marine Services and Trading & Industrial Divisions. Profits were higher in the Property and Beverages Divisions.

Attributable profit from the Beverages Division was HK$1,785 million, compared with a profit of HK$336 million in the first half of 2016. This included non-recurring gains of HK$1,229 million arising out of the realignment of the Coca-Cola bottling system in Mainland China. There was also a non-recurring gain in the USA of HK$194 million, which arose on the changes to franchise terms. Disregarding the non-recurring gains, Swire Beverages made an attributable profit of HK$362 million in the first half of 2017, an increase of 8% compared with the first half of 2016. The increase reflected higher profits in the USA and Taiwan. Disregarding a foreign exchange loss, profits in Mainland China were slightly higher. Profits were little changed in Hong Kong. Overall sales volume increased by 26% to 644 million unit cases reflecting the inclusion of sales in new franchise territories in Mainland China and the USA. Volume was unchanged in Hong Kong and declined in Taiwan.

The attributable loss from the Marine Services Division was HK$676 million, compared with a loss of HK$247 million in the first half of 2016. Swire Pacific Offshore ("SPO") recorded a loss of HK$692 million. The offshore exploration market remained weak and oversupply of offshore support vessels is evidenced by widespread stacking of vessels. SPO's overall average fleet utilisation decreased by 3.5 percentage points to 58.9% and average daily charter hire rates fell by 24% to USD18,500.

Attributable profit of the Trading & Industrial Division was HK$65 million, a decrease of 44% compared with the first half of 2016. The decrease principally reflected lower profits from Swire Retail and Swire Foods groups and increased losses from Swire Pacific Cold Storage and Swire Environmental Services. The attributable profit of Taikoo Motors increased.



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2017 Interim Results Press Briefing

2017 Interim Results Press Briefing
2017 Interiml Results Analyst Briefing

2017 Interim Results Analyst Briefing
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)

Swire Properties Limited IR chart

Swire Properties' consolidated profit attributable to shareholders in the first half of 2017 was HK$14,763 million, compared to HK$5,334 million in the first half of 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$1,069 million from HK$3,559 million in the first half of 2016 to HK$4,628 million in the first half of 2017. The increase in underlying profit reflected higher trading profits from the sale of luxury residential properties in Hong Kong, mainly from the handover of pre-sold units at the ALASSIO development. There were higher contributions from office and residential properties in Hong Kong, from properties in the USA and from retail properties in Mainland China. In Hong Kong, gross rental income from office and retail properties was stable and that from residential properties increased. In Mainland China, gross rental income increased, reflecting positive rental reversions and higher retail sales. In the USA, gross rental income increased following the opening of most of the Brickell City Centre development in 2016. Operating losses from hotels in the first half of 2017 were lower than in the first half of 2016, reflecting better results from EAST, Miami since its opening.



Watch videos 
2017 Interim Results Press Briefing

2017 Interim Results Press Briefing
2017 Interiml Results Analyst Briefing

2017 Interim Results Analyst Briefing
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)

Cathay Pacific Airways Limited IR chart

The Cathay Pacific Group reported an attributable loss of HK$2,051 million for the first six months of 2017. This compares to an attributable profit of HK$353 million for the same period in 2016 and an attributable loss of HK$928 million in the second six months of 2016.

Fundamental structural changes within the airline industry continue to affect the operating environment for the Group's airlines and created difficult operating conditions in the first half of 2017. The factors which affected performance were largely the same as in 2016. Intense competition with other airlines was the most significant. Other major adverse factors were higher fuel prices (including the effect of Cathay Pacific's hedging), the adverse effect of the strength of the Hong Kong dollar on revenues denominated in other currencies, and higher aircraft maintenance costs. Passenger revenue remained under pressure. Cargo revenue improved significantly. Fuel hedging losses were reduced. The contribution from subsidiary and associated companies was satisfactory.

Cathay Pacific's results included gains of HK$586 million on the disposal of its interest in Travelsky Technology Limited and of HK$244 million on a deemed partial disposal of its interest in Air China and were after charges in respect of a fine by the European Commission equivalent to HK$498 million and redundancy costs of HK$224 million.



Listen to the webcast 
2017 Interim Results Analyst Briefing (audiocast)

2017 Interim Results Analyst Briefing (audiocast)
 

Other references 
2017 Interim Report
2016 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)

HAECO IR chart

The HAECO Group reported an attributable profit of HK$348 million for the first six months of 2017. This compares with a profit of HK$1,111 million for the equivalent period in 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").

More airframe and line services work was done by HAECO Hong Kong in the first half of 2017 than in the first half of 2016. The increase in airframe services work reflected higher demand and the deferral of some customers' work from 2016. Line services benefited from more aircraft movements. HAECO ITM Limited ("HAECO ITM") recorded a higher profit, which reflected more repair business. The share of HAESL's profit increased. The shareholding increased from 45% to 50%. More engines were overhauled and more work was done per engine. HAECO USA Holdings, Inc. ("HAECO Americas") recorded a higher loss in the first half of 2017 than in the first half of 2016. This reflected lower demand for its airframe services, lower margins on seats sold and the completion of fewer interior reconfigurations. The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited ("HAECO Xiamen") increased in the first half of 2017 compared with the first half of 2016. This principally reflected higher demand for its airframe services. The profit of Taikoo Engine Services (Xiamen) Company Limited ("TEXL") increased, while Taikoo (Xiamen) Landing Gear Services Company Limited ("HAECO Landing Gear Services") incurred a smaller loss than in the first half of 2016. The overall contribution from the Group's other activities in Mainland China improved.



Listen to the webcast 
2017 Interim Results Analyst Briefing (audiocast)

2017 Interim Results Analyst Briefing (audiocast)
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)
Swire Pacific

Swire Pacific Limited IR chart

The Swire Pacific Group's consolidated profit attributable to shareholders for the first half of 2017 was HK$12,138 million, HK$7,077 million higher than for the first half of 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$332 million or 9% to HK$3,880 million.

Adjusted underlying profit attributable to shareholders decreased by HK$721 million or 25% to HK$2,164 million. The decrease reflects weaker results from the Aviation, Marine Services and Trading & Industrial Divisions. Profits were higher in the Property and Beverages Divisions.

Attributable profit from the Beverages Division was HK$1,785 million, compared with a profit of HK$336 million in the first half of 2016. This included non-recurring gains of HK$1,229 million arising out of the realignment of the Coca-Cola bottling system in Mainland China. There was also a non-recurring gain in the USA of HK$194 million, which arose on the changes to franchise terms. Disregarding the non-recurring gains, Swire Beverages made an attributable profit of HK$362 million in the first half of 2017, an increase of 8% compared with the first half of 2016. The increase reflected higher profits in the USA and Taiwan. Disregarding a foreign exchange loss, profits in Mainland China were slightly higher. Profits were little changed in Hong Kong. Overall sales volume increased by 26% to 644 million unit cases reflecting the inclusion of sales in new franchise territories in Mainland China and the USA. Volume was unchanged in Hong Kong and declined in Taiwan.

The attributable loss from the Marine Services Division was HK$676 million, compared with a loss of HK$247 million in the first half of 2016. Swire Pacific Offshore ("SPO") recorded a loss of HK$692 million. The offshore exploration market remained weak and oversupply of offshore support vessels is evidenced by widespread stacking of vessels. SPO's overall average fleet utilisation decreased by 3.5 percentage points to 58.9% and average daily charter hire rates fell by 24% to USD18,500.

Attributable profit of the Trading & Industrial Division was HK$65 million, a decrease of 44% compared with the first half of 2016. The decrease principally reflected lower profits from Swire Retail and Swire Foods groups and increased losses from Swire Pacific Cold Storage and Swire Environmental Services. The attributable profit of Taikoo Motors increased.



Watch videos 
2017 Interim Results Press Briefing

2017 Interim Results Press Briefing
2017 Interiml Results Analyst Briefing

2017 Interim Results Analyst Briefing
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)
Swire Properties

Swire Properties Limited IR chart

Swire Properties' consolidated profit attributable to shareholders in the first half of 2017 was HK$14,763 million, compared to HK$5,334 million in the first half of 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$1,069 million from HK$3,559 million in the first half of 2016 to HK$4,628 million in the first half of 2017. The increase in underlying profit reflected higher trading profits from the sale of luxury residential properties in Hong Kong, mainly from the handover of pre-sold units at the ALASSIO development. There were higher contributions from office and residential properties in Hong Kong, from properties in the USA and from retail properties in Mainland China. In Hong Kong, gross rental income from office and retail properties was stable and that from residential properties increased. In Mainland China, gross rental income increased, reflecting positive rental reversions and higher retail sales. In the USA, gross rental income increased following the opening of most of the Brickell City Centre development in 2016. Operating losses from hotels in the first half of 2017 were lower than in the first half of 2016, reflecting better results from EAST, Miami since its opening.



Watch videos 
2017 Interim Results Press Briefing

2017 Interim Results Press Briefing
2017 Interiml Results Analyst Briefing

2017 Interim Results Analyst Briefing
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)
Cathay Pacific Airways

Cathay Pacific Airways Limited IR chart

The Cathay Pacific Group reported an attributable loss of HK$2,051 million for the first six months of 2017. This compares to an attributable profit of HK$353 million for the same period in 2016 and an attributable loss of HK$928 million in the second six months of 2016.

Fundamental structural changes within the airline industry continue to affect the operating environment for the Group's airlines and created difficult operating conditions in the first half of 2017. The factors which affected performance were largely the same as in 2016. Intense competition with other airlines was the most significant. Other major adverse factors were higher fuel prices (including the effect of Cathay Pacific's hedging), the adverse effect of the strength of the Hong Kong dollar on revenues denominated in other currencies, and higher aircraft maintenance costs. Passenger revenue remained under pressure. Cargo revenue improved significantly. Fuel hedging losses were reduced. The contribution from subsidiary and associated companies was satisfactory.

Cathay Pacific's results included gains of HK$586 million on the disposal of its interest in Travelsky Technology Limited and of HK$244 million on a deemed partial disposal of its interest in Air China and were after charges in respect of a fine by the European Commission equivalent to HK$498 million and redundancy costs of HK$224 million.



Listen to the webcast 
2017 Interim Results Analyst Briefing (audiocast)

2017 Interim Results Analyst Briefing (audiocast)
 

Other references 
2017 Interim Report
2016 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)
HAECO

HAECO IR chart

The HAECO Group reported an attributable profit of HK$348 million for the first six months of 2017. This compares with a profit of HK$1,111 million for the equivalent period in 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").

More airframe and line services work was done by HAECO Hong Kong in the first half of 2017 than in the first half of 2016. The increase in airframe services work reflected higher demand and the deferral of some customers' work from 2016. Line services benefited from more aircraft movements. HAECO ITM Limited ("HAECO ITM") recorded a higher profit, which reflected more repair business. The share of HAESL's profit increased. The shareholding increased from 45% to 50%. More engines were overhauled and more work was done per engine. HAECO USA Holdings, Inc. ("HAECO Americas") recorded a higher loss in the first half of 2017 than in the first half of 2016. This reflected lower demand for its airframe services, lower margins on seats sold and the completion of fewer interior reconfigurations. The profit of Taikoo (Xiamen) Aircraft Engineering Company Limited ("HAECO Xiamen") increased in the first half of 2017 compared with the first half of 2016. This principally reflected higher demand for its airframe services. The profit of Taikoo Engine Services (Xiamen) Company Limited ("TEXL") increased, while Taikoo (Xiamen) Landing Gear Services Company Limited ("HAECO Landing Gear Services") incurred a smaller loss than in the first half of 2016. The overall contribution from the Group's other activities in Mainland China improved.



Listen to the webcast 
2017 Interim Results Analyst Briefing (audiocast)

2017 Interim Results Analyst Briefing (audiocast)
 

Other references 
2017 Interim Report
2017 Interim Report (PDF)
2017 Interim Results Analyst Briefing presentation
2017 Interim Results Analyst Briefing presentation (PDF)
The non-statutory accounts (within the meaning of section 436 of the Companies Ordinance (Cap. 622) (the "Ordinance")) in this document are not specified financial statements (within such meaning). The relevant specified financial statements have been or will be delivered to the Registrar of Companies in Hong Kong in accordance with section 664 of the Ordinance. Auditor's reports have been prepared on those specified financial statements. Those reports were not qualified or otherwise modified, did not refer to any matters to which the auditor drew attention by way of emphasis without qualifying the reports and did not contain statements under section 406(2) or 407(2) or (3) of the Ordinance.
Board appointment
Board appointment
Senior management appointments
Senior management appointments
2017 Interim Results
2017 Interim Results
A THRIVE-ing future
A THRIVE-ing future
International Archives Day
International Archives Day
Swire News - September 2017
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