| Swire Pacific Limited | Swire Properties Limited | Cathay Pacific Airways Limited |
The consolidated profit attributable to shareholders for the first half of 2019 was HK$7,939 million, a 41% decrease compared to 2018. Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased significantly, to HK$15,846 million. The increase principally reflects a gain on disposal of the Cityplaza Three and Cityplaza Four properties of HK$11,221 million. Disregarding significant non-recurring items in both years, the recurring underlying profit for the first half of 2019 was HK$4,226 million, an increase of 40%. Dividends for the first half of 2019 increased by 13%.
The HAECO group’s attributable profit was HK$535 million for the first six months of 2019. This compares with a profit of HK$469 million on a 100% basis for the first half of 2018. The higher profit primarily reflected profit growth at HAECO Hong Kong, HAESL and the component repair businesses in Mainland China. The losses of HAECO Americas were similar to those in the first half of 2018.
The Beverages Division made an attributable profit of HK$748 million in the first half of 2019, compared with an attributable profit of HK$880 million in the first half of 2018. The 2018 figure included a non-recurring gain of HK$144 million arising from the disposal of a plant in Kaohsiung, Taiwan. Disregarding the non-recurring gain in 2018, the attributable profit was 2% higher than in the first half of 2018. There was strong profit growth in Mainland China in the first half of 2019 but the overall results of the period were adversely affected by withholding tax of HK$83 million on a dividend paid from the USA. Total revenue increased by 3%. Overall sales volume increased by 1% to 885 million unit cases. Revenue and volume grew in Mainland China and Taiwan. In the USA, revenue grew and volume decreased. In Hong Kong, revenue and volume slightly decreased.
Swire Pacific Offshore reported an attributable loss of HK$633 million for the first half of 2019, compared to a loss of HK$663 million (disregarding impairment charge and associated write-offs). There was some increase in utilisation of its fleet in the first half of 2019. This reflected more working rig activity. Average day rates remained depressed due to oversupply of vessels.
The attributable loss of the Trading & Industrial Division was HK$114 million in the first half of 2019, compared with an attributable profit of HK$154 million in the first half of 2018. Disregarding non-recurring items (write-off of the investment in an associated company and the write back of a provision in respect of the cold storage business), the attributable profit in the first half of 2019 was HK$60 million. The decrease in profit mainly reflected the net adverse effect of disposals of the Akzo Nobel and Columbia businesses (which were profit making) and the cold storage business (which was loss making). There were reduced contributions from Swire Retail, Taikoo Motors and Swire Foods.
(Left to right) Swire Properties Chief Executive, Guy Bradley, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2019 Interim Results announcement.
The increase in underlying profit from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019 principally reflected the profit arising from the sale of interests in two office buildings Cityplaza Three and Cityplaza Four in Taikoo Shing and in other investment properties in Hong Kong.
Recurring underlying profit from property investment increased by 7% in the first half of 2019, with satisfactory growth at the Hong Kong and Mainland China portfolios. Gross rental income increased by 6% (to HK$6,346 million in the first half of 2019, compared with HK$5,996 million in the first half of 2018). This reflected positive rental reversions at the office properties in Hong Kong and Mainland China and higher retail sales in Mainland China and the USA.
Underlying profit from property trading in the first half of 2019 arose mainly from the sale of carparks at the ALASSIO development in Hong Kong and residential units in the USA.
Hotels recorded a profit in the first half of 2019 compared with a loss in the first half of 2018, principally due to improved performances at the hotels in Shanghai in Mainland China and in the USA.
The Group's passenger revenue increased by 5.6% to HK$37,449 million in the first half of 2019. Capacity increased by 6.7%. The growth in revenue reflected the full impact of new routes introduced in 2018, the introduction of two new routes in 2019, increased frequencies on existing routes and the use of larger aircraft on popular routes. Load factor remained unchanged at 84.2%. Passengers carried increased by 4.4% to 18.3 million. Yield decreased by 0.9% to HK54.9 cents due to intense competition in premium classes and long haul economy class, and adverse foreign currency movements.
Cargo revenue declined, reflecting weaker global trade brought about in part by US-China trade tensions. Volume and yield declined. The Group's cargo revenue in the first half of 2019 was HK$11,498 million, a decrease of 11.4% compared to the same period in 2018. Flown cargo capacity of Cathay Pacific and Cathay Dragon increased by 1.1%, principally due to additional belly cargo space in newly acquired passenger aircraft. Facing weak demand, the Group rationalised freighter capacity and emphasised shipments of specialist cargo. Load factor decreased by 4.9 percentage points, to 63.4%. Tonnage carried decreased by 5.7% to 979 thousand tonnes. Yield decreased by 2.6% to HK$1.88.
Swire Pacific Limited
The consolidated profit attributable to shareholders for the first half of 2019 was HK$7,939 million, a 41% decrease compared to 2018. Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased significantly, to HK$15,846 million. The increase principally reflects a gain on disposal of the Cityplaza Three and Cityplaza Four properties of HK$11,221 million. Disregarding significant non-recurring items in both years, the recurring underlying profit for the first half of 2019 was HK$4,226 million, an increase of 40%. Dividends for the first half of 2019 increased by 13%.
The HAECO group’s attributable profit was HK$535 million for the first six months of 2019. This compares with a profit of HK$469 million on a 100% basis for the first half of 2018. The higher profit primarily reflected profit growth at HAECO Hong Kong, HAESL and the component repair businesses in Mainland China. The losses of HAECO Americas were similar to those in the first half of 2018.
The Beverages Division made an attributable profit of HK$748 million in the first half of 2019, compared with an attributable profit of HK$880 million in the first half of 2018. The 2018 figure included a non-recurring gain of HK$144 million arising from the disposal of a plant in Kaohsiung, Taiwan. Disregarding the non-recurring gain in 2018, the attributable profit was 2% higher than in the first half of 2018. There was strong profit growth in Mainland China in the first half of 2019 but the overall results of the period were adversely affected by withholding tax of HK$83 million on a dividend paid from the USA. Total revenue increased by 3%. Overall sales volume increased by 1% to 885 million unit cases. Revenue and volume grew in Mainland China and Taiwan. In the USA, revenue grew and volume decreased. In Hong Kong, revenue and volume slightly decreased.
Swire Pacific Offshore reported an attributable loss of HK$633 million for the first half of 2019, compared to a loss of HK$663 million (disregarding impairment charge and associated write-offs). There was some increase in utilisation of its fleet in the first half of 2019. This reflected more working rig activity. Average day rates remained depressed due to oversupply of vessels.
The attributable loss of the Trading & Industrial Division was HK$114 million in the first half of 2019, compared with an attributable profit of HK$154 million in the first half of 2018. Disregarding non-recurring items (write-off of the investment in an associated company and the write back of a provision in respect of the cold storage business), the attributable profit in the first half of 2019 was HK$60 million. The decrease in profit mainly reflected the net adverse effect of disposals of the Akzo Nobel and Columbia businesses (which were profit making) and the cold storage business (which was loss making). There were reduced contributions from Swire Retail, Taikoo Motors and Swire Foods.
(Left to right) Swire Properties Chief Executive, Guy Bradley, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2019 Interim Results announcement.
Swire Properties Limited
The increase in underlying profit from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019 principally reflected the profit arising from the sale of interests in two office buildings Cityplaza Three and Cityplaza Four in Taikoo Shing and in other investment properties in Hong Kong.
Recurring underlying profit from property investment increased by 7% in the first half of 2019, with satisfactory growth at the Hong Kong and Mainland China portfolios. Gross rental income increased by 6% (to HK$6,346 million in the first half of 2019, compared with HK$5,996 million in the first half of 2018). This reflected positive rental reversions at the office properties in Hong Kong and Mainland China and higher retail sales in Mainland China and the USA.
Underlying profit from property trading in the first half of 2019 arose mainly from the sale of carparks at the ALASSIO development in Hong Kong and residential units in the USA.
Hotels recorded a profit in the first half of 2019 compared with a loss in the first half of 2018, principally due to improved performances at the hotels in Shanghai in Mainland China and in the USA.
Cathay Pacific Airways Limited
The Group's passenger revenue increased by 5.6% to HK$37,449 million in the first half of 2019. Capacity increased by 6.7%. The growth in revenue reflected the full impact of new routes introduced in 2018, the introduction of two new routes in 2019, increased frequencies on existing routes and the use of larger aircraft on popular routes. Load factor remained unchanged at 84.2%. Passengers carried increased by 4.4% to 18.3 million. Yield decreased by 0.9% to HK54.9 cents due to intense competition in premium classes and long haul economy class, and adverse foreign currency movements.
Cargo revenue declined, reflecting weaker global trade brought about in part by US-China trade tensions. Volume and yield declined. The Group's cargo revenue in the first half of 2019 was HK$11,498 million, a decrease of 11.4% compared to the same period in 2018. Flown cargo capacity of Cathay Pacific and Cathay Dragon increased by 1.1%, principally due to additional belly cargo space in newly acquired passenger aircraft. Facing weak demand, the Group rationalised freighter capacity and emphasised shipments of specialist cargo. Load factor decreased by 4.9 percentage points, to 63.4%. Tonnage carried decreased by 5.7% to 979 thousand tonnes. Yield decreased by 2.6% to HK$1.88.
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