Singapore Airlines Posts FY2008/2009 Net Profit of S$1.06 Billion

[Singapore_Air]

Singapore Airlines has posted a full year net profit of S$1.062 billion / US$725 million.

Concentrating on the fourth quarter, revenue fell around 19.7% to S$3321.3 billion / US$2.27 billion.

Staff costs fell 28.5% to S$569.2 million / US$388 million.

Fuel costs rose S$4 million to S$1.3 billion / US$888 million.

The fourth quarter operating loss was S$28 million / US$19 million.

The standout non-operating items appear to be a share of profits from joint venture companies in the quarter of S$19.9 million / US$13.6 million but a massive share of losses from associated companies of S$106.2 million / US$72.5 million. The largest associated companies are Virgin Atlantic Airways and Tiger Airways.

There was a positive taxation charge and an adjustment in the Singaporean corporate tax rate amounted to a tax gain of S$174.8 million / US$119 million.

The net profit was therefore S$65.1 million / US$44 million, of which only S$41.9 million / US$28.6 million was attributable to equity holders of the company.


An exchange gain of S$116.2 million / US$79.4 million was recognised however that was outweighed by incuring a heding loss of S$540 million / US$368 million.

The airline received S$13.2 million / US$9.0 million in liquidated damages, presumably from Airbus S.A.S.

Cash and bank balances fell 24.8% to S$3.848 billion / US$2.62 billion for the financial year.

Cash outflow was a massive S$1.402 billion / US$957 million in the financial year.

Capital expenditure for the financial year was S$2.031 billion / US$1.39 billion.

The company also paid out S$1.185 billion / US$809 million in dividends resulting from the last financial year.


It may upset some to know that passenger yield in the fourth quarter only fell 5.6% to S¢11.8 per km / US¢8.1 per km.

Passenger load factor fell 8.2%, presumably as a result of the airline trying to maintain yields as hard as they could at the expense of load. Unit costs rose 2.2% to S¢9.1 per km / US¢6.2 per km. Therefore the breakeven load factor surpassed the actual passenger load factor, rising 5.9% to 77.1%.

For the full financial year the operating profits of the major subsidiaries were as follows:

sats: S$171 million / US$116.8 million (-2.0% year-on-year)
SIA Engineering: S$113 million / US$77 million (+9.4% year-on-year)
SilkAir: S$34 million / US$23 million (-16.0% year-on-year)
SIA Cargo: loss of S$245 million / US$167 million (profit of S$132 million / US$90 million the year before)

SIA Cargo's load factor fell 5.7% to 56.5% in the fourth quarter. Cargo yield collapsed 27.9% to S¢29.2 per load tonne kilometre / US¢19.9 per ltk. Cargo unit costs fell 7.9% to S¢21.9 per ltk / US¢15.0 per ltk. As a result, the breakeven load factor shot up 16.2% to 75.0%.

[Nick C]

SQ Still Profitable For FY08/09

News just released. SQ still profitable for FY08/09. S$1.062Bn!

http://www.singaporeair.com/saa/en_U...easeFY0809.pdf

*Could the mods please merge this post with the other thread? Both posted a min a part.

[Singapore_Air]

Separate to the financial announcement, the staff bonus is 2.43 months.

[flyguy]

the more reflective of current financial situation would be best reflected in this 1st Quarter 09 results which should be out soon.

[SQtraveller]

the more reflective of current financial situation would be best reflected in this 1st Quarter 09 results which should be out soon.

post deleted

[Singapore_Air]

Between 01 April 2009 and 31 March 2010:

SIA plans to add 5 Airbus A380-800s, 7 Airbus A330-300s and dispose of 3 Boeing 747-400 aircraft.

13 "surplus aircraft" will be withdrawn from the operating fleet.

Only 99 aircraft are planned to be in operation on 31 March 2010.

[Singapore_Air]

The surplus aircraft are 9 x B777-200 and 4 x B747-400 and are being actively marketed for sale.

[wsssaero]

I thought all the 744s are already sold?

[Bitterroot]

The surplus aircraft are 9 x B777-200 and 4 x B747-400 and are being actively marketed for sale.

Interesting if these numbers turn out to be correct. There would then be one more A380 than expected (9V-SKK, I guess), and only 7 of the current 9 or 10 active 744s are accounted for.....

[Nick C]

When FY07/08 report was released, SQ had 18 744s 10 were leased (operating) and 8 owned. 3 of the owned 744s were supposed to go to SQC prior to the economic crisis for BCF conversion - SPA/SP?/SP?. So it looks like SQ is holding on to the 3 BCF candidates.

[N_Architect]

Not directly related, but as it pertains to SIA's majority stakeholder, and not really fitting in any other thread, I post it here:

http://www.bloomberg.com/apps/news?p...uY&refer=home#

Temasek Sells Bank of America Stake, Looks to China

May 15 (Bloomberg) -- Temasek Holdings Pte sold its 3.8 percent stake in Bank of America Corp. at a loss that may total $4.6 billion, as the Singapore state-owned fund shifts bets from Wall Street to emerging markets.

The sale may have raised about $1.27 billion, based on the average price of Bank of America stock in the first quarter. The divestment was completed by March 31, according to a U.S. filing. Temasek declined to comment on the price.

Temasek, whose investments shrank 31 percent in the eight months through Nov. 30, raised its stake in China Construction Bank Corp. this week, and Chief Executive Officer Ho Ching said yesterday the fund would reduce exposure to developed economies. Temasek had spent about $5.9 billion since 2007 buying shares in Merrill Lynch & Co., acquired by Bank of America on Jan. 1 after the stock slid 78 percent last year.

“The belief now is that the world is not so American- centric anymore,” said Melvyn Teo, associate professor of finance at the Singapore Management University. “It’s going to be driven more and more by the Chinese economy and consumer so might as well load up more on Chinese banks than American banks.”

The value of Temasek’s assets fell to S$127 billion ($87 billion) in the eight months to Nov. 30 as the credit crisis drove down the value of stakes in Merrill Lynch, Barclays Plc and Standard Chartered Plc. The drop in the portfolio tracked a 38 percent retreat in the MSCI World Index.

Bank of America Stake

Ho, wife of Singapore Prime Minister Lee Hsien Loong, drove an expansion outside Singapore and increased financial assets to 40 percent of the company’s portfolio. Charles ‘Chip’ Goodyear, the 51-year-old former head of BHP Billiton Ltd. who oversaw a fourfold increase in the company’s stock during his almost five- year tenure as CEO, will replace Ho in October.

A Form 13F filing to the U.S. Securities and Exchange Commission yesterday from Temasek indicates that the fund no longer held shares in Bank of America or Merrill Lynch as of March 31. An earlier filing showed that the Singapore firm owned 219.7 million Merrill Lynch shares at the end of 2008.

At the average price of $6.73 for the first quarter, the stake would have been valued at $1.27 billion. The sale would have been worth $2.14 billion at yesterday’s closing price.

Since the end of March, when Temasek completed the sale, Bank of America has risen 66 percent. The stock dropped 52 percent in the first quarter.

Temasek confirmed it sold its Bank of America shares in an e-mailed response to Bloomberg News queries today. The company declined to say how much it sold the stake for or when the sale was conducted. Mark Tsang, a Hong Kong spokesman at Bank of America, declined to comment.

Raising Capital

“They probably want to turn the page on this one and move on,” said David Cohen, an economist with Action Economics in Singapore. “I suspect they’re telling themselves they should have focused on Asian investments, particularly China. You can’t fault them now. The financial crisis blind-sided a lot of investors.”

...

Temasek will cut its holdings in the so-called OECD countries to 20 percent as it expands in Asia and emerging markets from Latin America to Africa, Ho said in a speech posted on the company’s Web site yesterday.

...

Other Investments

“We have also been re-assessing our long term portfolio balance over the last two years,” Ho, 56, said in the May 12 speech. “As Asia continues to develop, it continues to de-risk. We are increasingly more confident of Asia’s future.”

Temasek was founded in 1974 to foster development of the island’s banks, airlines and ports, and remains the biggest shareholder of six of the 10 biggest Singapore companies by market value. It owns shares of the island’s biggest bank and its largest telephone company.

Temasek’s investments in Asia include Bank of China Ltd. and ICICI Bank Ltd., India’s No. 2 lender.

“We’ve been very heavily overweight in Asia for some years now and leery of the Western financial institutions because Asia is where the growth is at,” said Hugh Young, managing director at Aberdeen Asset Management Plc, which has about $30 billion of Asian assets.

[9V-JKL]

89 SIAEC managers to take pay cut

Managers at SIA Engineering Company (SIAEC) are to take a pay cut from June 1, a move expected to result in a quarterly S$340,000 savings.
SIAEC said in a filing with the Singapore Exchange that there will be a 20% reduction in wages for its CEO William Tan Seng Koon. The company's senior VPs, VPs and managers will also take pay cuts of 14%, 12% and 10% respectively.



The wage reductions are in line with the company's plans to reduce costs, in spite of posting a fourth-quarter profit of S$65.5 million, up 18.7% from a year earlier. The move, which will affect 89 management staff, is expected to yield a quarterly savings of S$340,000.


http://procurement-online.com/news/13084

[boing]

89 SIAEC managers to take pay cut

They are the only ones with a growth in profits and they are implementing a pay cut ! What is SIA Cargo doing then ?

And an interesting discussion I found in another forum regarding SQ's SATS divestment. Points to ponder.

http://www.airliners.net/aviation-fo...asek#ID4413486

[huaiwei]

They are the only ones with a growth in profits and they are implementing a pay cut ! What is SIA Cargo doing then ?

I do not know the full details, but just remember that published profit/loss figures are for the fiscal period which has already past, while plans to cut salaries is for the current or next fiscal period. We cannot assume that the period already past is the same as the situation now or in the near future. Pay cuts and such should not be seen as "punishment" for a job badly done previously!