Cathay Pacific 2014 Annual Report Download - page 30

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Cathay Pacific Airways Limited
28
Fuel expenditure and hedging
A breakdown of the Group’s fuel cost is shown below:
2014
HK$M
2013
HK$M
Gross fuel cost 39,388 39,117
Fuel hedging losses/(gains) 911 (985)
Net fuel cost 40,299 38,132
Fuel consumption in 2014 was 41.7 million barrels (2013:
39.5 million barrels).
The Group’s fuel hedging exposure at 31st December 2014
is set out in the table below:
0%
10%
20%
30%
60%
40%
50%
$60 $70 $80 $90 $100 $110 $120 $130
2015 2016 2017 2018
Percentage consumption subject to hedging contracts
Maximum fuel hedging exposure
Brent (US$/barrel)
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 payments 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$76 million to
HK$599 million, principally as a result of a reduction in
deferred tax.
Dividends
• Dividends proposed for the year are HK$1,416 million
representing a dividend cover of 2.2 times.
• Dividends per share increased from HK$0.22 to HK$0.36.
Assets
• Total assets as at 31st December 2014 were
HK$171,974 million.
• During the year, additions to fixed assets were
HK$13,979 million, comprising HK$13,148 million for
aircraft and related equipment, HK$480 million for
buildings and HK$351 million for other equipment.
Total assets
Buildings
and other
equipment
Intangible
assets
Aircraft and
related
equipment
Current
assets
Long-term
investments
and others
51%
6%
6%
20%
17%
Financial Review