September 2018
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2018 Interim Results
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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 2018 was HK$13,501 million, 11% higher than for the first half of 2017. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased to HK$1,265 million. The decrease in underlying profit principally reflects an impairment charge (and associated write-offs) of HK$3,900 million at Swire Pacific Offshore ("SPO") in the Marine Services Division. Adjusted underlying profit attributable to shareholders, which excludes the effect of significant non-recurring items, increased by 40% to HK$3,026 million. The increase in adjusted underlying profit reflects better results from the Aviation, Beverages, and Trading & Industrial Divisions, partly offset by less profits from property trading in the Property Division.

Attributable profit from the Beverages Division was HK$880 million (including non-recurring gain of HK$144 million arising from the disposal of its Kaohsiung plant in Taiwan), compared with a profit of HK$1,785 million in the first half of 2017. The 2017 figure included non-recurring gains of HK$1,229 million arising from the realignment of the Coca-Cola bottling system in Mainland China and a non-recurring gain of HK$194 million arising from changes to the division's franchise terms in the USA. Disregarding non-recurring gains in both periods, Swire Beverages made an attributable profit of HK$736 million in the first half of 2018, more than double its attributable profit of HK$362 million in the first half of 2017. The increase principally reflected higher profits in Mainland China and the USA. Overall sales volume increased by 36% to 873 million unit cases reflecting the inclusion of sales in new franchise territories in Mainland China and the USA. Volume in Hong Kong and Taiwan also increased by 4% and 7% respectively.

The attributable loss from the Marine Services Division was HK$4,550 million, compared with a loss of HK$676 million in the first half of 2017. SPO recorded a loss of HK$4,563 million. This included impairment charges in respect of the carrying value of vessels (and an associated impairment of goodwill and deferred tax asset write-off) aggregating HK$3,900 million. Disregarding the impairment charges, SPO's loss was HK$663 million, slightly lower than that in the first half in 2017. SPO's overall average fleet utilisation increased by 10 percentage points to 68.9% and average daily charter hire rates fell by 7% to US$17,300 per day.

The attributable profit of the Trading & Industrial Division was HK$154 million, an increase of 137% compared with the first half of 2017. The increase reflected better results from Swire Retail, Taikoo Motors and Swire Foods, partly offset by weaker results from Akzo Nobel Swire Paints.



Watch videos 
2018 Interim Results Press Briefing

2018 Interim Results Press Briefing
2018 Interiml Results Analyst Briefing

2018 Interim Results Analyst Briefing
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 Interim Results Analyst Briefing presentation (PDF)

Swire Properties Limited IR chart

Swire Properties' underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$1,591 million from HK$4,628 million in the first half of 2017 to HK$6,219 million in the first half of 2018. The increase in underlying profit principally reflected profit arising from the sale of its interests in an office building in Kowloon Bay and in other investment properties in Hong Kong, partly offset by a substantial decrease in profit from property trading. Adjusted underlying profit (which excludes the profit on sale of interests in investment properties) was HK$3,732 million in the first half of 2018, compared with HK$4,624 million in the first half of 2017.

Recurring underlying profit from property investment increased by 9% in the first half of 2018, with the Mainland China developments doing particularly well. Gross rental income increased by 8% (to HK$5,996 million in the first half of 2018, compared with HK$5,555 million in the first half of 2017). This reflected positive rental reversions at the office properties and higher retail sales.

Underlying profit from property trading in the first half of 2018 arose mainly from the sale of houses at the WHITESANDS development and of carparks at the AZURA development in Hong Kong.

Losses from hotels were higher in the first half of 2018 than in the first half of 2017, principally due to pre-opening costs at hotels in Shanghai in Mainland China. The results of its hotels in Hong Kong and the U.S.A. and of our other hotels in Mainland China improved.



Watch videos 
2018 Interim Results Press Briefing

2018 Interim Results Press Briefing
2018 Interiml Results Analyst Briefing

2018 Interim Results Analyst Briefing
Interim Highlights Video 2018

Interiml Highlights Video 2018
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 Interim Results Analyst Briefing presentation (PDF)

Cathay Pacific Airways Limited IR chart

The Cathay Pacific Group reported an attributable loss of HK$263 million for the first six months of 2018. This compares to an attributable loss of HK$2,051 million in the first half of 2017. Our airlines, Cathay Pacific and Cathay Dragon, reported an attributable loss of HK$904 million for the first six months of 2018, compared to an attributable loss of HK$2,765 million in the first half of 2017. Revenue generation was satisfactory during the first half of 2018, with passenger yield improving. The Group's cargo business was strong, with growth in both volume and yield. It benefited from a weak US dollar during the early part of the period, but were adversely affected by significantly increased fuel prices.

The Group's passenger revenue increased by 10.4% to HK$35,452 million in the first half of 2018. Capacity increased by 3.2%. The growth reflected the introduction of five new routes, increased frequencies on existing routes and the use of larger aircraft on popular routes. The load factor decreased by 0.5 percentage points to 84.2%. Passengers carried increased by 1.9% to 17.5 million. Yield increased by 7.6% to HK55.4 cents. This reflected improvements in revenue management, favourable foreign currency movements, increased revenue from fuel surcharges and strong premium class demand. There was satisfactory growth in ancillary revenue.

Cargo revenue improved, reflecting strong demand. Tonnage carried grew faster than capacity and yield strengthened, reflecting increasing demand for specialist cargo shipments and the movement of higher value goods to and from Asia. The Group's cargo revenue in the first half of 2018 was HK$12,971 million, an increase of 23.4% compared to the same period in 2017. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 4.1%. The load factor increased by 2.1 percentage points, to 68.3%. Tonnage carried increased by 7.5% to 1.0 million tonnes. Yield increased by 16.3% to HK$1.93.



Listen to the webcast 
2018 Interim Results Analyst Briefing (audiocast)

2018 Interim Results Analyst Briefing (audiocast)
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 Interim Results Analyst Briefing presentation (PDF)

HAECO IR chart

The HAECO Group reported an attributable profit of HK$469 million for the first half of 2018, compared with a profit of HK$348 million for the first half of 2017. HAECO USA Holdings, Inc. ("HAECO Americas") continued to make losses, albeit at a reduced level. This reduction in losses was the principal reason for the increase in the HAECO Group profit. Revenue decreased by 1.1% to HK$7,325 million.

Less airframe services work was done in the first half of 2018 than in the first half of 2017. This reflected less cabin modification work, the deferral of work by some customers from the first to the second half of the year in Hong Kong, and the loss of significant work from a major customer of HAECO Americas from August 2017. However, the airframe services results of HAECO Americas improved significantly due to an increased proportion of higher margin work and gains in efficiency.

Line services results were similar in the first half of 2018 to those in the first half of 2017. There was a small increase in the number of aircraft movements handled.

Results from HAECO Americas' cabin and seat work improved in the first half of 2018 compared with the first half of 2017. More seats were sold at higher margins, but there was less cabin reconfiguration work and fewer Panasonic communication equipment installation kits were delivered. More engines were repaired and overhauled in the first half of 2018 than in the first half of 2017. The beneficial effect of this was partly offset by a change in the terms on which Taikoo Engine Services (Xiamen) Limited ("TEXL") contracts with its key customer. More component and avionics maintenance work was done. The first half results of the inventory technical management subsidiary (HAECO ITM Limited ("HAECO ITM")) were lower than those in the first half of 2017.



Reference 
2018 Interim Report
2018 Interim Report (PDF)
Swire Pacific

Swire Pacific Limited IR chart

The Swire Pacific Group's consolidated profit attributable to shareholders for the first half of 2018 was HK$13,501 million, 11% higher than for the first half of 2017. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, decreased to HK$1,265 million. The decrease in underlying profit principally reflects an impairment charge (and associated write-offs) of HK$3,900 million at Swire Pacific Offshore ("SPO") in the Marine Services Division. Adjusted underlying profit attributable to shareholders, which excludes the effect of significant non-recurring items, increased by 40% to HK$3,026 million. The increase in adjusted underlying profit reflects better results from the Aviation, Beverages, and Trading & Industrial Divisions, partly offset by less profits from property trading in the Property Division.

Attributable profit from the Beverages Division was HK$880 million (including non-recurring gain of HK$144 million arising from the disposal of its Kaohsiung plant in Taiwan), compared with a profit of HK$1,785 million in the first half of 2017. The 2017 figure included non-recurring gains of HK$1,229 million arising from the realignment of the Coca-Cola bottling system in Mainland China and a non-recurring gain of HK$194 million arising from changes to the division's franchise terms in the USA. Disregarding non-recurring gains in both periods, Swire Beverages made an attributable profit of HK$736 million in the first half of 2018, more than double its attributable profit of HK$362 million in the first half of 2017. The increase principally reflected higher profits in Mainland China and the USA. Overall sales volume increased by 36% to 873 million unit cases reflecting the inclusion of sales in new franchise territories in Mainland China and the USA. Volume in Hong Kong and Taiwan also increased by 4% and 7% respectively.

The attributable loss from the Marine Services Division was HK$4,550 million, compared with a loss of HK$676 million in the first half of 2017. SPO recorded a loss of HK$4,563 million. This included impairment charges in respect of the carrying value of vessels (and an associated impairment of goodwill and deferred tax asset write-off) aggregating HK$3,900 million. Disregarding the impairment charges, SPO's loss was HK$663 million, slightly lower than that in the first half in 2017. SPO's overall average fleet utilisation increased by 10 percentage points to 68.9% and average daily charter hire rates fell by 7% to US$17,300 per day.

The attributable profit of the Trading & Industrial Division was HK$154 million, an increase of 137% compared with the first half of 2017. The increase reflected better results from Swire Retail, Taikoo Motors and Swire Foods, partly offset by weaker results from Akzo Nobel Swire Paints.



Watch videos 
2018 Interim Results Press Briefing

2018 Interim Results Press Briefing
2018 Interiml Results Analyst Briefing

2018 Interim Results Analyst Briefing
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 Interim Results Analyst Briefing presentation (PDF)
Swire Properties

Swire Properties Limited IR chart

Swire Properties' underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$1,591 million from HK$4,628 million in the first half of 2017 to HK$6,219 million in the first half of 2018. The increase in underlying profit principally reflected profit arising from the sale of its interests in an office building in Kowloon Bay and in other investment properties in Hong Kong, partly offset by a substantial decrease in profit from property trading. Adjusted underlying profit (which excludes the profit on sale of interests in investment properties) was HK$3,732 million in the first half of 2018, compared with HK$4,624 million in the first half of 2017.

Recurring underlying profit from property investment increased by 9% in the first half of 2018, with the Mainland China developments doing particularly well. Gross rental income increased by 8% (to HK$5,996 million in the first half of 2018, compared with HK$5,555 million in the first half of 2017). This reflected positive rental reversions at the office properties and higher retail sales.

Underlying profit from property trading in the first half of 2018 arose mainly from the sale of houses at the WHITESANDS development and of carparks at the AZURA development in Hong Kong.

Losses from hotels were higher in the first half of 2018 than in the first half of 2017, principally due to pre-opening costs at hotels in Shanghai in Mainland China. The results of its hotels in Hong Kong and the U.S.A. and of our other hotels in Mainland China improved.



Watch videos 
2018 Interim Results Press Briefing

2018 Interim Results Press Briefing
2018 Interiml Results Analyst Briefing

2018 Interim Results Analyst Briefing
Interim Highlights Video 2018

Interiml Highlights Video 2018
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 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$263 million for the first six months of 2018. This compares to an attributable loss of HK$2,051 million in the first half of 2017. Our airlines, Cathay Pacific and Cathay Dragon, reported an attributable loss of HK$904 million for the first six months of 2018, compared to an attributable loss of HK$2,765 million in the first half of 2017. Revenue generation was satisfactory during the first half of 2018, with passenger yield improving. The Group's cargo business was strong, with growth in both volume and yield. It benefited from a weak US dollar during the early part of the period, but were adversely affected by significantly increased fuel prices.

The Group's passenger revenue increased by 10.4% to HK$35,452 million in the first half of 2018. Capacity increased by 3.2%. The growth reflected the introduction of five new routes, increased frequencies on existing routes and the use of larger aircraft on popular routes. The load factor decreased by 0.5 percentage points to 84.2%. Passengers carried increased by 1.9% to 17.5 million. Yield increased by 7.6% to HK55.4 cents. This reflected improvements in revenue management, favourable foreign currency movements, increased revenue from fuel surcharges and strong premium class demand. There was satisfactory growth in ancillary revenue.

Cargo revenue improved, reflecting strong demand. Tonnage carried grew faster than capacity and yield strengthened, reflecting increasing demand for specialist cargo shipments and the movement of higher value goods to and from Asia. The Group's cargo revenue in the first half of 2018 was HK$12,971 million, an increase of 23.4% compared to the same period in 2017. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 4.1%. The load factor increased by 2.1 percentage points, to 68.3%. Tonnage carried increased by 7.5% to 1.0 million tonnes. Yield increased by 16.3% to HK$1.93.



Listen to the webcast 
2018 Interim Results Analyst Briefing (audiocast)

2018 Interim Results Analyst Briefing (audiocast)
 

Other references 
2018 Interim Report
2018 Interim Report (PDF)
2018 Interim Results Analyst Briefing presentation
2018 Interim Results Analyst Briefing presentation (PDF)
HAECO

HAECO IR chart

The HAECO Group reported an attributable profit of HK$469 million for the first half of 2018, compared with a profit of HK$348 million for the first half of 2017. HAECO USA Holdings, Inc. ("HAECO Americas") continued to make losses, albeit at a reduced level. This reduction in losses was the principal reason for the increase in the HAECO Group profit. Revenue decreased by 1.1% to HK$7,325 million.

Less airframe services work was done in the first half of 2018 than in the first half of 2017. This reflected less cabin modification work, the deferral of work by some customers from the first to the second half of the year in Hong Kong, and the loss of significant work from a major customer of HAECO Americas from August 2017. However, the airframe services results of HAECO Americas improved significantly due to an increased proportion of higher margin work and gains in efficiency.

Line services results were similar in the first half of 2018 to those in the first half of 2017. There was a small increase in the number of aircraft movements handled.

Results from HAECO Americas' cabin and seat work improved in the first half of 2018 compared with the first half of 2017. More seats were sold at higher margins, but there was less cabin reconfiguration work and fewer Panasonic communication equipment installation kits were delivered. More engines were repaired and overhauled in the first half of 2018 than in the first half of 2017. The beneficial effect of this was partly offset by a change in the terms on which Taikoo Engine Services (Xiamen) Limited ("TEXL") contracts with its key customer. More component and avionics maintenance work was done. The first half results of the inventory technical management subsidiary (HAECO ITM Limited ("HAECO ITM")) were lower than those in the first half of 2017.



Reference 
2018 Interim Report
2018 Interim Report (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.
Sir Adrian Swire
(1932-2018)
Sir Adrian Swire (1932-2018)
Senior management visits
Senior management visits
Meetings with senior Mainland officials
Meetings with senior Mainland officials
Board appointment
Board appointment
Senior management appointments
Senior management appointments
Celebrating International Archives Day 2018
Celebrating International Archives Day 2018
Thriving together
Thriving together
2018 Interim Results
2018 Interim Results
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Swire News 2018 September Issue
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