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Topic: EK Announces Net Profit For First 6 Months
Username: Jfklucky777
Posted 2009-11-05 10:18:38 and read 2761 times.

Emirates announced a USD $205 million new profit for it's first 6 months $128 million more than the first 6 months last year.

The whole article could be read here: http://www.emirates.com/us/english/a...etail.aspx?article=518638&offset=0

Topic: RE: EK Announces Net Profit For First 6 Months
Username: Lightsaber
Posted 2009-11-05 11:45:12 and read 2667 times.

There was another thread on this that disapeared. A profit is good news for EK. I noticed they burned through $1.1B in cash. That could have all been Aircraft and other purchases, but I have not confirmed.

Does anyone know what fraction of the new debt is government supported? By this I mean USA or EU (e.g., the recent EK bond offering backed by the US import/Export bank).

While a profit is good, I also look at cash flow and EK burned through $200M of cash and took on another $900M of debt.

At this point I think they need to slow aircraft purchases but keep moving forward with Concourse 3 (for long term growth). This is a change in my opinion on EK's growth. Long term they should do well and should return to their fast growth strategy to maintain their first mover advantage. But for the next 18 to 24 months, it will be about concerving cash.

Lightsaber

Topic: RE: EK Announces Net Profit For First 6 Months
Username: Astuteman
Posted 2009-11-05 11:52:19 and read 2653 times.



Quoting Lightsaber (Reply 1):
There was another thread on this that disapeared. A profit is good news for EK. I noticed they burned through $1.1B in cash. That could have all been Aircraft and other purchases, but I have not confirmed.

That's not really correct, I don't think. Their net cash position deteriorated by only $200m from $2bn to $1.8Bn.
I recognise they secured $900m of new financing.

Rgds

Topic: RE: EK Announces Net Profit For First 6 Months
Username: Lightsaber
Posted 2009-11-05 13:28:37 and read 2557 times.



Quoting Astuteman (Reply 2):
That's not really correct, I don't think. Their net cash position deteriorated by only $200m from $2bn to $1.8Bn.
I recognise they secured $900m of new financing.

You are correct. $200M less cash and $900M more debt. But in this environment, coming up with $1.1B per half year will be tough. Hence my opinion EK should slow growth for 18 to 24 months.

Lightsaber

Topic: RE: EK Announces Net Profit For First 6 Months
Username: Astuteman
Posted 2009-11-05 22:45:55 and read 2346 times.



Quoting Lightsaber (Reply 3):
You are correct. $200M less cash and $900M more debt. But in this environment, coming up with $1.1B per half year will be tough. Hence my opinion EK should slow growth for 18 to 24 months.

Mind you, they seem to be making the "grow during a recession" paradigm work, if the lift in profits is anything to go by...

He who dares and all that..  Smile

Rgds


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