Cathay Pacific 2007 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2007 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Notes to the Accounts
Supplementary Information
28. Financial risk management (continued)
Group Company
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
Variable rate instruments
Liquid funds 21,147 15,444 7,121 4,459
Long-term loans (14,929) (12,557) (10,874) (8,648)
Obligations under finance leases (9,057) (10,978) (6,127) (9,253)
Interest rate and currency swaps 667 3,923 (186) 3,543
Bank overdrafts (12) (29) (10) (19)
Net exposure (2,184) (4,197) (10,076) (9,918)
Sensitivity analysis for interest rate exposure
An increase of 25 basis points in interest rates at the reporting date would have increased equity and
decreased profit and loss for the year by the amounts shown below. These amounts represent the fair value
change of interest rate swaps and financial liabilities designated as at fair value through profit and loss at the
balance sheet date and the increase in net finance charges. This analysis assumes that all other variables,
in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2006.
2007 2006
Equity
HK$M
Profit and loss
HK$M
Equity
HK$M
Profit and loss
HK$M
Variable rate instruments 34 (61) 30 (33)
Cathay Pacific Airways Limited Annual Report 2007 85