Cathay Pacific 2011 Annual Report Download - page 32

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30
Financial Review
Percentage consumption subject to hedging contracts
0%
5%
10%
15%
25%
20%
Maximum fuel hedging exposure
$60 $70 $80
Brent (US$/barrel)
$90 $100 $110 $120 $130
2012 2013
Total assets
6%
Buildings and
other equipment
6%
Intangible
assets
48%
Aircraft and
related
equipment
23%
Current assets
17%
Long-term investments
Fuel expenditure and hedging
The Group’s fuel cost is HK$38,877 million
(2010: HK$28,276 million).
The Group’s maximum fuel hedging exposure at
31st December 2011 is set out below:
The Group’s policy is to reduce exposure to fuel price risk
by hedging a percentage of its expected fuel
consumption. As the Group uses a combination of fuel
derivatives to achieve its desired hedging position, the
percentage of expected consumption hedged will vary
depending on the nature and combination of contracts
which generate payoffs in any particular range of fuel
prices. The chart indicates the estimated maximum
percentage of projected consumption by year covered by
hedging transactions at various settled Brent prices.
Taxation
The tax charge decreased by HK$659 million to
HK$803 million, principally as a result of the
lower profit.
Dividends
Dividends proposed for the year are HK$2,046 million
representing a dividend cover of 2.7 times.
Dividends per share decreased from HK$1.11 to
HK$0.52.
Assets
Total assets as at 31st December 2011 were
HK$137,133 million.
During the year, additions to fixed assets were
HK$16,972 million, comprising HK$14,019 million for
aircraft and related equipment, HK$2,628 million for
buildings and HK$325 million for other equipment.
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