Swire Pacific first-half profit dives 67 per cent, hurt by Cathay Pacific and marine services losses
The group has to absorb attributable losses of US$15 million and US$579 million from Cathay Pacific and marine services division respectively
Swire Pacific, one of Asia’s largest conglomerates, saw underlying profit plunged 67 per cent in the first half as gains in investment property sales failed to offset losses from Cathay Pacific Airways and its marine services business.
Excluding revaluation gains on investment properties, the underlying profit was HK$1.27 billion (US$161 million) in the six months to June, it said in a filing to the Hong Kong stock exchange on Thursday.
The group, whose business empire spans aviation, real estate and offshore marine services, said turnover rose 5 per cent to HK$42.3 billion from the same period in 2017.
An interim dividend of HK$1.20 per share will be paid, up from HK$1 a year ago.
“The decrease in underlying profit principally reflects an impairment charge (and associated write-offs) of HK$3.9 billion at (offshore oil and gas provider) Swire Pacific Offshore,” said chairman of Swire Pacific Merlin Bingham Swire, who was appointed to lead the group and its Hong Kong-listed property arm Swire Properties from July 1, in the statement.
“Despite a substantial recovery in the oil price, there has been no increase in average charter hire rates. Too many vessels, including some being brought out of cold stack, are competing for the available work” Swire said.