Cathay Pacific 2010 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2010 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 108

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

28
Fuel expenditure and hedging
A breakdown of the Group’s fuel cost is shown below:
2010
HK$M
2009
HK$M
Gross fuel cost 28,235 20,107
Realised hedging losses/(gains) 78 (740)
Unrealised mark to market gains (37) (2,018)
Net fuel cost 28,276 17,349
Settlement and premium paid 746 3,180
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.
Financial Review
29%
Current assets
6%
Intangible assets
47%
Aircraft and related equipment
4%
Buildings and other equipment
14%
Long-term investments
Total assets
Taxation
The tax charge increased by HK$1,179 million to
HK$1,462 million, principally reflecting the higher
profit.
Dividends
Dividends proposed for the year are HK$4,367 million
representing a dividend cover of 3.2 times.
Dividends per share increased from HK¢10 to HK¢111.
Assets
Total assets as at 31st December 2010 were
HK$128,053 million.
During the year, additions to fixed assets were
HK$8,110 million, comprising HK$6,742 million for
aircraft and related equipment, HK$1,211 million for
buildings and HK$157 million for other equipment.
•
•
•
•
•
The Group’s maximum fuel hedging exposure as at 31st
December 2010 is set out below: