Singapore Airlines 2016 Annual Report Download - page 57

LTK/BBL
Finance Charges
Finance charges were $2 million or 4.5 per cent lower,
mainly due to repayment of the $300 million five-year
retail bond during the financial year.
Interest Income
Interest income was $8 million or 9.8 per cent higher,
mainly due to higher interest from deposits, bonds, fixed
rate notes, investment funds, and loans extended to
Virgin Australia and Scoot.
Fuel Productivity of Passenger Fleet
440
430
420
410
400
440
430
420
410
400
LTK/BBL
2011/12 2012/13 2013/14 2014/15 2015/16
Fuel Productivity and Sensitivity Analysis
Fuel productivity as measured by load tonne-km
per barrel (ltk/BBL) decreased marginally over the
preceding year to 427ltk/BBL. This was mainly due to
lower bellyhold load factor.
Surplus on Disposal of Aircra, Spares and
Spare Engines
The $4 million gain on disposal of aircra, spares and
spare engines pertained mainly to gain from sale of
buyer furnished equipment and spares. Last year’s
$37 million gain arose mainly from the sale and
leaseback of three 777-300ERs and sale of one
777-200 aircra.
Dividends from Subsidiary and
Associated Companies
Dividends from subsidiary and associated companies
were $80 million lower, mainly due to absence of special
dividend declared by SIAEC in the prior year.
Dividends from Long-Term Investments
Dividends from long-term investments were $90 million
higher, primarily attributable to special dividend
declared by Everest Investment Holdings Limited,
formerly known as Abacus International Holdings
Limited, following sale of its 65.0 per cent investment
in Abacus International Pte Ltd to Sabre Technology
Enterprises II Ltd.
Other Non-operating Items
Other non-operating items in 2015/16 comprised
mainly gain on sale of flight simulators to Airbus Asia
Training Centre (“AATC”) ($13 million), and surplus
on divestment of Abacus Travel Systems ($5 million),
partially oset by additional impairment on two
grounded 777-200 aircra ($9 million), and impairment
loss on a long-term investment ($8 million). Last year’s
non-operating items pertained mainly to impairment
losses on the Company’s investment in Singapore
Flying College Pte Ltd ($43 million), and two grounded
777-200 aircra ($22 million).
Taxation
There was a net tax expense of $94 million, comprising
current tax charge of $104 million and deferred tax
credit of $10 million.
As at 31 March 2016, the Company’s deferred taxation
account stood at $1,347 million.
A change in fuel productivity (passenger aircra)
of 1.0 per cent would impact the Company’s annual
fuel cost by about $26 million, before accounting for
changes in fuel price, US dollar exchange rate and
flying operations.
A change in the price of fuel of one US dollar per barrel
aects the Company’s annual fuel cost by about $41
million, before accounting for US dollar exchange rate
movements, and changes in volume of fuel consumed.
Annual Report FY2015/16 55