MY MAS CA is GONE.
Written by Surin Murugiah of theedgemalaysia.com
Friday, 25 February 2011 17:32
KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted net profit of RM225.92 million in the fourth quarter ended Dec 31, 2010, a decline of 64.7% from RM640.12 million a year ago, on lower derivative gains, higher finance costs and losses from foreign currency hedging contracts.
The national carrier said on Friday, Feb 25 its revenue rose 8.2% to RM3.67 billion from RM3.39 billion a year ago. Earnings per share were 6.76 sen compared with 31.17 sen. It recorded an operating profit of RM137.3 million in 4Q mainly due to higher operating revenue and improvement in its yield.
MAS said it recorded lower derivative gain of RM143.77 million, down about 75% from the RM581.69 million in derivate gains a year ago. Its finance costs rose to RM32.44 million from RM19.94 million. It also incurred loss of RM28.6 million in foreign currency hedging contracts compared with loss of RM7.4 million a year ago.
For FY10, it recorded net profit of RM234.47 million, down 54.9% from RM520.24 million in FY09. Revenue was higher by 17% at RM13.58 billion from RM11.60 billion.
MAS said it met its “target” range of RM200 million toRM425 million, adding that for 2011, its operating profit target was RM300 million to RM600 million, while on time performance target was 84.7% to 87%.
Commenting on its prospects, MAS said although the International Air Transport Association (IATA) reported strong full year 201 demand in both the passenger and cargo business, IATA now expects industry profits to fall in 2011.
It said a number of uncertainties had plagued the market, with recent oil prices movement being one of the major concerns. In addition, economic uncertainties and severe weather setbacks will add to the challenges faced by airlines globally, it said.
The operating environment will become more challenging in 2011, with the average fuel price expected to increase significantly and global GDP growth expected to fall to 2.6% compared to 3.5% in 2010, it said.
MAS said it would continue to strengthen its competitive edge by continuously improving customer experience, improving external and internal systems and infrastructure as well as improving its pricing approach to strengthen yields.
The carrier said it would take delivery of a further four B737-800s and five A330s in 2011, and work was also underway to prepare for the delivery of its flagship A380 in 2012.
“In total, MAS has ordered 45 B737-800s, six A380s and four A330s freighters which will be delivered in the next five years. By 2015, MAS will be operating one of the youngest fleets in the region, supporting its vision of becoming Asia’s Number One Full Service carrier,” it said.