TIDMSKYW
RNS Number : 4472H
Skywest Airlines Limited
22 February 2010
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ASX code SXR
AIM code SKYW
22 February 2010
SKYWEST AIRLINES LTD ANNOUNCES PROFIT RESULTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2009
HIGHLIGHTS
o Pre Tax Profit for the six months was up 503% to S$10.128m.
o The half-year earnings are S$ 0.0364 per share.
o The group revenue for the half-year increased by 10% to S$107.055m from the
comparable half-year Period.
o The net profit after tax is S$7.091m an amount that represents a turnaround
from the S$2.8m loss for comparable half-year period to 31 December 2008.
o EBITDAR for the period was S$28.8m an increase of 108%.
o An interim dividend is to be S$ 0.005 per share, there was no interim
dividend paid in the last comparable period.
The unaudited results for the half-year ended 31 December 2009, based on the
financial statements and reported in Singapore Dollars ("S$") are presented
below. The presentation of these accounts has been subject to auditor review.
+--------------------------------+-------------+---------------+----------+
| Half year ended 31 December | 2009 | 2008 | Change |
+--------------------------------+-------------+---------------+----------+
| | S$ | S$ | |
+--------------------------------+-------------+---------------+----------+
| Revenue |107,055,564 | 97,308,717 | 10% |
+--------------------------------+-------------+---------------+----------+
| EBITDAR (earnings before | 28,812,784 | 13,850,283 | 108% |
| interest, tax, depreciation, | | | |
| amortization and aircraft | | | |
| rental) | | | |
+--------------------------------+-------------+---------------+----------+
| Profit (loss) before income | 10,128,097 | (2,512,457) | 503%* |
| tax | | | |
+--------------------------------+-------------+---------------+----------+
| Net profit (loss) after tax | 7,091,067 | (2,786,267) | 354%* |
+--------------------------------+-------------+---------------+----------+
| Basic earnings per share | 3.64 | (1.40) | 360%* |
| (Singapore cents) | | | |
+--------------------------------+-------------+---------------+----------+
| Dividend per share (Singapore | 0.5 | - | NC |
| cents) | | | |
+--------------------------------+-------------+---------------+----------+
| | | | |
+--------------------------------+-------------+---------------+----------+
| (*) - comparatives are based | | | |
| on negative figures | | | |
+--------------------------------+-------------+---------------+----------+
DIVIDEND DETAILS:
Ex dividend date: 7 April 2010
Associated record date: 9 April 2010
Dividend payment date: 16 April 2010
CURRENCY COMPARATIVES:
In respect to the 1st half result, for the convenience of UK and Australian
shareholders, additional columns are provided below to denote an equivalent
value in Pounds Sterling and Australian Dollars:
+-----------------------------+-------------+------------+------------+
| | S$ | GBP | AUD |
| | |Equivalent |Equivalent |
| | | (I) | (II) |
+-----------------------------+-------------+------------+------------+
| Revenue | 107,055,564 | 46,183,770 | 87,036,174 |
+-----------------------------+-------------+------------+------------+
| | | | |
+-----------------------------+-------------+------------+------------+
| EBITDAR | 28,812,784 | 12,429,835 | 23,424,793 |
+-----------------------------+-------------+------------+------------+
| (earnings before interest, | | | |
| tax, depreciation, | | | |
| amortization and aircraft | | | |
| rentals) | | | |
+-----------------------------+-------------+------------+------------+
| Profit before income tax | 10,128,097 | 4,369,261 | 8,234,143 |
+-----------------------------+-------------+------------+------------+
| Net profit after tax | 7,091,067 | 3,059,086 | 5,765,037 |
+-----------------------------+-------------+------------+------------+
| Profit attributable to | 7,091,067 | 3,059,086 | 5,765,037 |
| shareholders | | | |
+-----------------------------+-------------+------------+------------+
| Basic earnings per share | 3.64 cents | 1.57 | 2.96 |
| | | pence | cents |
+-----------------------------+-------------+------------+------------+
i.In this table, the applicable exchange rate between S$ and GBP was taken to be
the average exchange rate of 1:0.4314 which was used in the presentation of the
accounts.
ii.In this table, the applicable exchange rate between S$ and AUD was taken to
be the average exchange rate of 1: 0.8130 which was used in the presentation of
the accounts.
Chairman's Statement regarding the Group's Operations and Financial Results
Dear Fellow Shareholders,
On behalf of your Board of Directors, I am pleased to present our interim
results for the half year ended 31 December 2009 (the "Period"). The Company
announces that the Group revenue for the half year has increased to
S$107,055,564 (2008 : S$97,308,717) with earnings before interest, taxation,
depreciation, amortization and aircraft rentals (EBITDAR) doubling to
S$28,812,784 (2008 : S$13,850,283).
We recognise and appreciate the opportunity that the provision of airline
services to ferry to and from work the employees of Rio Tinto, FMG, BHP,
Newcrest , Newmont and others represent, and we treat this opportunity
seriously. We will remain at the service of these important customers and will
endeavour to do all that is necessary to satisfy client needs and provide
solutions to their workforce logistical requirements. The result demonstrates
the importance of maintaining the business strategy of providing an excellent
airline service to the Coastal Towns of Western Australia combined with
scheduled charter for the worlds major mining and resource companies.
The Group's net profit after income tax was recorded as S$7,091,067 compared to
the comparable prior year's loss of S$2,786,267, with earnings per share of 3.64
Singapore cents. The board of Directors and senior management has maintained
its business strategy in the face of a difficult global economic set of
conditions. We have navigated the Group through a difficult period to turn this
half year results to a net profit after tax of S$7.09m as compared to a loss in
last year's comparative period.
The interim dividend payment to shareholders will be 0.5 Singapore cents per
ordinary share. The dividend payment will be paid to the shareholders on 16
April 2010.
ASX Quotation
The Company was admitted to the official list of the Australian Securities
Exchange on 7 December 2009. The Company now has its shares traded in both
London, on the AIM market and in Australia, on the Australian Securities
Exchange. Over a period of time, the Australian listing is expected to improve
the liquidity of the Company's securities, which is where the bulk of the Group
operations are located. The Airline already operates as an Australian domestic
airline, has an Australian high capacity air operator's certificate and the
Company has a large number of Australian shareholders. Secondly, quotation of
the Company's shares on the Australian Securities Exchange might facilitate an
increase in the Australian level of investment in the Company which may in turn
assist the Group to obtain an Australian International Airline Licence (thus
potentially positioning the Group well with growth opportunities in
international routes originating or terminating in Australia.)
Trading and outlook
The Group continues to explore new route and services to expand the Airlines
business. The Group has reinstated the Kalgoorlie to Melbourne service effective
from 5 February 2010.
The Group continues to recognise the growth potential for Western Australia,
particularly in light of recent announcements of a significant number of
significant resource developments. To this end, the Airline has continued to
engage, with demonstrable success, an additional strategy of focusing services
on the resources sector, targeting as clients the major resource producers who
fly their workers on a regular scheduled basis into and out of the mining areas.
These scheduled fly-in fly-out contracts provide strong baseline recurring
revenues. The Airline is well placed to capture more business in this area and
at this time, it is tendering for various charter contracts and has deployed an
additional aircraft, which may be utilized in due course for the purpose of
operating additional charter services.
The Group also continues to provide conventional airline services to all of the
major airports in Western Australia and beyond, as it has done for the previous
46 years. This regular airline business that the Group operates such as
scheduled flights provided to the public, continues its organic growth in a
buoyant environment. We believe that the scope for growth in this area of the
business is a significant opportunity, and the Airline continues to expand its
route network, adding regional routes as and when more aircraft become available
through new fleet additions or by virtue of adjusted scheduling in accordance
with demand.
In furtherance of its revenue growth, the Airline also enjoys a unique advantage
in its business operations by being able to sell regular passenger tickets
combined with block bookings to its resource clients thus, combining two methods
of operation and commerce within the ambit of the transport policies of the
current Western Australian Government. Furthermore, the Airline has an
exclusive licence issued by the Western Australian Government on some routes.
During the period, the Government extended the Airline's exclusive licence for
the Coastal Network of Western Australia.
During the period, the Group has added one additional F100 and one F50 jet
aircraft to its fleet and bring the total fleet size to 17.
Reclassification and comparative figures
Certain reclassifications have been made to the prior period's comparative to
enhance comparability with current year financial statements. Prior period's
Rental of aircraft expenses of S$10,439,234, depreciation expenses of
S$5,734,097 and administrative expenses of S$13,837,618 has been reclassified to
cost of sales. Prior period's other investments of S$227,900 in the statement
of financial position has been reclassified from current assets to non-current
assets.
Risks
Risks faced by the business remain Government actions, the normal commercial
risks and typical airline industry related risks. The impact of significant
rapid changes in exchange rates and fuel costs will continue to represent a
significant business risks. The company does attempt to mitigate changes in the
dollar and fuel costs by way of mitigating cost burdens. The Group will from
time to time purchase fuel hedges. As announced on 18 December 2009, the Group
has entered into a cashless collar in respect of 25% of its overall fuel
requirements at spot market rates from the period 1 January 2010 to 30 June
2010.
Jeff Chatfield
Executive Chairman
Enquires:
Skywest Airlines Ltd
+61 411 478 132
Jeff Chatfield, Executive Chairman
Nominated Adviser
0207 220 1666
James Joyce/ David Porter, W H Ireland Limited
Company Stockbrokers
W H Ireland Limited
0207 220 1690
Financial Public Relations
Bishopsgate Communications
0207 562 3350
Nick Rome/ Will Tindall/ Giang Nguyen
Media Enquiries in Australia
Nicole Harrison
+61 414 626 723
Websites:
www.skywest.com.sg
www.skywest.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
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