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Topic: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 12:35:28 and read 5479 times.

Singapore Airlines Limited - a member of Star Alliance - The Airline Network For Earth - is due to report Q2 and hence H1 FY03/04 profits.

Dow Jones Newswires polled four analysts with estimates ranging from S$62 million / US$35 513 600 to S$150 million / US$85.92 million. The concensus was for a net profit of S$95.5 million / US$54 702 400.

Bloomberg polled three analysts and they have a concensus of only S$65 million / US$37.232 million.

"There is a turnaround in traffic pick-up and you can see SIA increasing capacity, especially to China where demand is pretty strong. The pick-up in yields is tentative. If that improves, then there may be some pick-up' in investor interest," Daiwa SB Investments (Singapore) Ltd's Lim Soo Hai said. "Most analysts are looking at normal times for the second half, especially during the year-end travel period. Business travel has also come back very fast," commented Standard & Poor's Investment Services' analyst Vxincent Ng.

"The second-quarter result is still probably going to be nothing to boast about, but at least it ought to be profit," said Timothy Ross of UBS. Dow Jones reports that analysts estimate Q2FY02/03 to have been S$296 million / US$169 548 800. The Airline only started quarterly reporting this year. The airline reported a Q1 loss of S$312 million / US$ due to the outbreak of Severe Acute Respiratory Syndrome in the region and the war on Iraq.

Demand increased during July to September which will help Q2 profits, in addition to the cost savings that SIA Group has made. It was with regret that the Group released 596 employees. Staff took pay cuts varying from 5% to 20% and no pay leave was imposed on pilots and cabin crew which has since been stopped. Those cost savings saved S$74 million / US$42 387 200 in Q1 and analysts say that S$40 million / US$22.912 million in Q2.

"The expected profit in the second quarter, however, won't be able to pull SIA out of loss for its first half," but the airline would post a "reasonable profit" for the Full Year said a Singaporean broker - making it the only major airline in the world to not report a full year loss along with Southwest Airlines of the United States of America. Analaysts estimate the H1 loss to be between S$209 million / US$119.7152 million to S$160 million / US$91.648 million.

Information gathered from Dow Jones / Yahoo,

Information gathered was rephrased and not copied and pasted with the exception of quotes. More information can be viewed by clicking the above hyperlinked webpages. Currency conversion from Singapore Dollars to U.S.A. Dollars courtesy of the Currency Converter

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 12:54:28 and read 5444 times.

Singapore Airlines Limited has announced a Q2 profit of S$305.8 million / US$175 101 080 for Q2. Coupled with the Q1 non-profit, this results in a H1 non profit of S$6.5 million / US$3 721 900 - an amazing rebound.

Revenue compared to the year before's Q2 was down 6.4% but up 52.3% compared to Q1. Revenue was S$2.5181 billion / US$1.44186 billion. H1 revenue was S$4.1715 billion / US$2.3886 billion.

Operating profit increased 18.4% compared to Q2FY0203 to S$314.8 million / US$180 254 480. Unfortunately, H1 operating non-profit amounted to S$62.5 million / US$35 787 500.

The Airline operated 27 MEGATOPS and 48 JUBILEE aircraft as of 30 September 2003.

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Scorpio
Posted 2003-10-29 13:15:05 and read 5397 times.

this results in a H1 non profit of S$6.5 million / US$3 721 900

LOL! Is that what they call it these days? A 'non profit'? Are you afraid the sky is going to come down on you when you call it what it is, i.e. that Singapore Airlines Limited - a member of Star Alliance - The Airline Network For Earth  Laugh out loud made a LOSS in H1?

The term 'euphemism' is taken to a whole new level with this one...

That aside, good to see the carrier rebounding, hope to see many others following in their footsteps (and yes, that includes Hong Kong's de facto flag carrier  Laugh out loud)

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 13:36:59 and read 5380 times.

Yes Scorpio, a "non profit" is comparable to the term that you used  Big grin

The company managed cut staff costs by S$68.5 million / US$39 223 100. Measures include no profit-sharing, wage cuts, staff leaving the company, less flying allowances paid and no pay leave being imposed on staff (since stopped).

Capacity in Q2 fell 10.8% and revenue passenger kilometres fell 9.3%. Passenger yields fell to S$0.089 / 5.099 US cents. - down 1.1%. The unit cost also fell 4.5% to S$0.064 / 3.667 US cents. The breakeven load factor fell 2.5% to 71.9%

Singapore Airport Terminal Services Limited Group posted a 3% rise in profits to S$50.8 million / US$29 105 076 for the quarter.
SIA Engineering Company Limited posted a 29.5% decline in profits to S$38.3 million / US$21 943 394.
Singapore Airlines Cargo Private Limited posted a 316.1% rise in profits to S$25.8 million / US$14 781 712
SilkAir (Singapore) Private Limited posted a 15.2% decline in profits to S$3.9 million / US$2 234 445.
Other subsidiaries incurred a S$1.5 million / US$859 402 loss.

Non operating items contributed S$27 million / US$15 469 223.
Joint Venture and Associated Comapnies contributed S$50 million / US$28 646 729 (this includes Virgin Atlantic Airways Limited of which Singapore Airlines Limited owns 49%).
Tax cost the airline S$73.8 million / US$42 282 571.

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: MD-11 forever
Posted 2003-10-29 13:39:28 and read 5365 times.

How do these numbers look like compared to the de fact flag carrier from a former british crown colony?

Cheers, Thomas

[Edited 2003-10-29 13:39:53]

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 13:49:14 and read 5353 times.

Maybe you could follow my lead and so some in depth personal research  Laugh out loud  Big grin

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: MD-11 forever
Posted 2003-10-29 13:57:38 and read 5345 times.

... Sorry mate! I'm not that obsessed by numbers, just I thought you surely had this information ready.......

Cheers, Thomas

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 16:48:34 and read 5261 times.

"The results seemed to show that things are turning around and that their cost-cutting measures are kicking in,'' said Simon Koh, who helps oversee $600 million at Commerzbank Asset Management Asia Ltd., and declined to specify his holdings. "The fact that they have added flights show that they are in a recovery phase."

"Our take on the immediate near term is upbeat, but we're not out of the woods yet," said Mr. Chew Choon Seng - CEO of Singapore Airlines Limited.

"Once SARS was over, business travel came right back," said Mr. Michael Tan Jiak Ngee - Senior Executive Vice President - Commerical.

"The yields were a lot better than most people expected. And nobody expect their cost cuts to be that aggressive," said Standard & Poor's Investment Services analyst Vincent Ng.

Bloomberg Asia


"We are ruling out changing SilkAir into a low cost carrier, which leaves us the option of A, doing nothing, or B, starting a low cost carrier from scratch," said Chief Executive Chew Choon Seng.

Reuters / Yahoo


DBS-Vickers analyst Chris Sanda described SIA's results as "a great set of numbers. All of the upside surprises have to do with the yields. Passenger yields were a lot more robust than expected and were only down 1%," he added." Sanda, who has a "buy" rating on the stock, intends to increase his full-year net profit forecast for SIA. He wouldn't say what his current forecast is.

Regarding the threats from low-cost airlines, Chew said: "We don't take them lightly." He said SIA has ruled out converting its regional arm, SilkAir, into a budget carrier which leaves only two other options. "Now, its either do nothing or start a low-cost carrier from scratch," he said, adding that there will be some announcements before the year is out.

Dow Jones Newswires / Yahoo

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 17:22:33 and read 5252 times.

Singapore Airlines Limited are "ruling out the changing of Silkair into a LCC model. Which leaves the other option of A doing nothing, or B starting a genuine Low Cost Carrier from scratch. We have to keep you guessing I'm afraid. er... but be assured that before the year is out we will be making some announcements."

Singapore Airlines Limited plans to fly to Nanjing, Northern China early in the new Financial Year beginning March 2004 and is "continuing to be on the look out for new growth opportunities."
The flights to Bangalore "are doing well."
In January 2004, flights to Shenzhen will commence.
SilkAir are looking to fly to "Chongquin" and also marketing seasonal charters to "Seeyan"

The A345 will offer "a confident journey". Somewhere in the middle of 2004, the A345 will go to New York. The Airline is confident that that is "something the business community will look forward to".

The Airline continues to work with Airbus Industrie to develop the A380. "The aircraft is gradually being built up. Various sections of the fuselage have already been built. The programme is on schedule. Our marketing colleagues are actively looking at various aircraft interior configurations and so on. Unfortunately, there will be no bowling alleys."

SIA are "adhering to the policy of a young and modern fleet." "We are still planning to cater for 8 - 10% growth" in the future going forward. "So we will need new aircraft both for fleet renewal and expansion." "Before the financial year is out, we would like to have the fun of watching Airbus Industrie and Boeing have another go at eachother for our business."

"The outlook for the immediate half year ahead. We want to be upbeat but..... the risk we face. Those who follow the oil industry will be aware that the OPEC producers have recently cut back their production quota in order to... stabilise the price of fuel but the truth of the matter is that they want to keep it high. Whether fuel prices will spike up or not, as usually at this time of the year we depend on the severity of the winter in the northern hemisphere. And whether there are further power outages or nuclear plant shutdowns here and there. SARS has been contained but it still lurks out there. And it will be too soon for anybody to be too relaxed about it. So we have to continue bienig vigilent. But if it does make a second appearance, I dare say that the industry at large and the health authorities are much better prepared to nip any resurgence in the bud. Third risk, purtains to one that I neededn't say any more about... Baghdad... vigilence is the order of the day.

Global economic outlook still remains one of weakness overall, excepting the economy of China, India, Australia and New Zealand. Thankfully, the SIA Group has fairly sizeable markets in those economies. So overall, our take on the immediate near-term is that we are upbeat, the numbers are all in the right direction but we are certainly not out of the woods yet."

"So in a nutshell, still some way to go but if I can paraphrase the incoming Governer of California - WE'RE BACK! Thank you!"

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-29 17:41:41 and read 5250 times.

Q:"Is the good passenger yields as a result of a mixed shift to more business class passengers?
A:"The answer is yes that there was a slight shift to business class in traffic mix, but more so because of exchange rate effects into Singapore Dollar results. The Sing D has not been the strongest currency in the review period and that helped some."

Q:"Andrew Tan - ABN Amro. In the Q2, you benefitted from the wage cuts, but analysing the last quarter's performance, reinvestment will eventually have to be made, so have these provisions already been made?"
A:"Under the agreement with staff unions, we will make up for the sacrifices made according to a scale which will be triggerred off when Group profit after tax exceeds S$200 million. So at this half way mark, we are still S$6.5 million under water. The prudent accounting techniques ..we do not have to factor that in. If the year continues to look up and visibility that we are breaking that threshold, provisions will be made. As shareholders and stakeholders start benefitting from profit, as so will staff."

Q:"Aviation Week: 1) I realise that your 747 fleet has been downsized to 28 aircraft currently. Does that mean some 747 routes are being replaced by 777s? 2) You have a higher utlisiation of the 777s now. Confirm?"
A:"Yes. Right at this moment, we have 78 aircraft comprising 27 Boeing 747-400s and 51 Boeing 777s. An all Boeing fleet as all our Airbuses have been stripped out or trading in by Boeing. The utilisation of the 777 fleet has gone up. Both fleets are in excess of ten over hours." "MTJN: The fact that we are switching some routes is to get better operating economies. .....? The 777 is a long range aircraft and we are averaging 12 hours on the 777ERs."

Q:"HSBC: Passenger yields. You said that the improvement is better than the analysts expected. Could you tell me what sort of contribution that made to the yield change (exchange rates, ticket prices etc...)"
A:"Year on year, the change is negligible - 1% differential. Bear in mind that when we shift things from...........?
Q2:"Are you saying that the underlying yield reduction was 2% but 1% positive yield due to exchange rates?"
(The financial officer is confused about the question and I have little interest)
A2: (At last) "Yes it's down two and up one".

Q:"CSFB. Some of your North Asian competitors have been making more positive comments about cargo. Is this a function of Singapore exports being worse than North Asian exports?"
A:"Cargo going to the US and Europe is fairly good. The cargo coming out from the US and Europe is soft and is industry word. Whether EVA or the Asian carriers talk about is the outbound going to the U.S....."

Q:"What is the outlook for the second half?"
A:"It is not company policy to give guidance!"

Q:"Lehman brothers. Another question on the 744 fleet. Where are those aircraft? Are you going to bring them back before they have to leave the fleet? You have 48 777s not 51. Do you have 3 777s parked?"
A:"Some 777s were parked for a month or so and have rejoined the fleet. As for the 747 fleet, at the end of September, 10 surplus but some are only surplus on a temporary lease so about three will be returned to the lessors. Some more will re-enter the fleet."

Q:"SIA is talking to Airbus and Boeing about fleet requirements. Can we have a number about how much you want to order?"
A:"The first question regarding the size of the order we will be putting out, we are still working on the specific numbers. Those numbers are being worked out because it is not an excercise that we take numbers out of the air but we do have to project the age profile, what numbers we will need for renewal, network expansion. We will need to tailor the number to our size projections."

Q:"Aviation Week: SIA has just signed a JV with Indian Airlines. Is this a sign of better times in collaboration with India?"
A:"Of course it is something positive and what the Indian PM stated at the ASEAN / APEC sessions, India is looking to open up aviation ties with the ASEAN countries. One can only view it as a positive development and .... "

"We still have tea and coffee in the foyer. Thank you and Goodnight."

Topic: RE: Singapore Airlines Posts Q2 Profit
Username: Singapore_Air
Posted 2003-10-30 23:41:49 and read 5161 times.

Under wage-cut agreement forced by Sars, SIA will restore 50 per cent of cuts if full-year group profit hits $300 million

'They blew me away with their Q2 results,' said airline analyst Vincent Ng from Standard & Poor's Asian Equity Research, who yesterday revised his full-year estimate to $591 million from $356 million. He was impressed by how the airline had managed to cut costs across the board, including saving $68.5 million in staff costs.

'So, not only did they benefit from the top line in terms of the improving traffic, but they also improved on profit margins as they became more efficient.'

Securities house UOB Kay Hian also revised its full-year profit forecast to $531 million from an estimate of $347 million made at the height of the Sars outbreak in May.

'From the results on Wednesday, we've seen a clear recovery in traffic and yields have remained high, despite the recent discount on ticket prices,' its airline analyst said.

Straits Times Singapore

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