Operating profit surpasses $1 billion, fuelled by improved performance in both passenger and cargo business segments
Outlook for travel demand robust, but fuel prices trending higher and strong competition persists
Three-year transformation programme showing good progress and yielding early results
Final dividend of 30 cents per share
The Group reported a net profit of $893 million for the 2017/18 financial year, an increase of $533 million, or 148.1%, from the same period last year. The increase was mainly attributable to a higher operating profit (+$434 million), absence of SIA Cargo’s provision for competition-related matters (+$132 million) and impairment of the Tigerair brand and trademarks (+$98 million) last year, partially offset by the absence of SIA Engineering’s gain on divestment of its 10.0% stake in Hong Kong Aero Engines Services Ltd (HAESL) and special dividends received from HAESL (-$178 million).
Operating profit for the Group rose to $1,057 million, $434 million (+69.7%) higher than the last financial year.
Group revenue rose $937 million year-on-year to $15,806 million (+6.3%), with revenue improvements in all business segments. Passenger flown revenue was $428 million (+3.6%) higher, as traffic growth (+6.3%) outpaced the decline in passenger yield (-3.1%). Cargo revenue was up $266 million on higher freight carriage (+5.3%) and yield (+8.9%). Engineering services revenue grew $52 million (+12.0%), largely attributable to line maintenance activities. Higher incidental income was chiefly contributed by adjustments arising from changes in estimated breakage rates and member benefits for the KrisFlyer programme ($178 million), and higher compensation for changes in aircraft delivery slots ($65 million).
Group expenditure increased $503 million to $14,749 million (+3.5%). Net fuel cost rose by $152 million (+4.1%) as average jet fuel prices were up 18%, partially offset by a hedging gain versus a loss last year (+$439 million). Ex-fuel costs were up $351 million (+3.3%), partly due to expansion by SilkAir and Scoot.
With this set of good financial result, tomorrow we may likely see its prices heading higher to re-capture the recent high of 11.29 .
From TA point of view, it is rather bullish!
The current price of 11.14 is hovering above its 20 days moving average, 50,100 & 200 days MA.
Looking good to rise higher to re-attempt 11.29 then 11.50 with extension to 11.80.
Not a call to buy or sell.
Please do your own due diligence.
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