6-Aug-2010 12:21 PM

Swire Pacific cash flow down, net debt up in 1H2010

Swire Pacific, parent of Cathay Pacific, reports (05-Aug-2010) the following financial highlights for the six months ended 30-Jun-2010:

  • Revenue: USD1,653 million, +7.5% year-on-year;
  • Operating profit: USD1,672 million, +439.8%;
  • Net profit: USD1,796 million, +331.7%;
  • Cash generated from operations: USD347.8 million, -30.7%;
  • Net cash flow before financing: (USD90.7 million), compared to a positive cash flow of USD116.0 million in p-c-p;
  • Net debt: USD4,809 million, +17.1%. [more]

*Based on the conversion rate at USD1 = HKD7.7658

Swire Pacific: “If present trends continue, the Cathay Pacific group expects its financial results to continue to be strong in the second half of 2010…Cathay Pacific remains confident in its long-term future.  It is in a challenging and unpredictable industry and it has to be mindful of the many things – economic fluctuations, rising fuel prices, even volcanic eruptions – that can quickly have an impact on its business…demand for HAECO's services in Hong Kong is expected to remain firm in the second-half as long as the current aviation market recovery continues.  However, TAECO's business in Xiamen is likely to continue to be weak, with substantial unsold capacity. Start-up losses at the new joint ventures in Mainland China are expected to continue in the second-half while HAESL's results are expected to be satisfactory.  Overall, 2010 will be, as expected, a challenging year,” Company statement. Source: Swire Pacific, 05-Aug-2010.