Singapore Airlines

" We have a very tentative profile in which we have reviewed the hedges that are effective and ineffective."

is this another way of saying the figure $710 million "Fuel Hedging Ineffectiveness" is aga aga?

(22-05-2020, 09:59 AM)ACTIVIST SPEAKS Wrote: " We have a very tentative profile in which we have reviewed the hedges that are effective and ineffective."

is this another way of saying the figure $710 million "Fuel Hedging Ineffectiveness" is aga aga?

There is a certain degree of estimation on the losses as they are primarily based on management's forecast of future cash outflow on fuel purchases.

Lets put it this way, SIA experienced losses of $3.4 billion in the form of fair value losses on a portfolio of fuel derivatives in the last financial year, based on total losses reported in both the income statements and statements of other comprehensive income. 

(1) $130 million of which was already offset by lower cash outflow due to cheaper fuel deliveries during the financial year, so those hedges were effective.
(2) $2.6 billion is expected to be offset by future cheaper fuel deliveries, based on current management expectations of future fuel orders, if all else holds constant hence hedges expected to be effective. 
(3)) $709 million is not expected to be offset by future cheaper fuel deliveries due to many factors. Management explained that it is primarily due to a reduction in expected fuel orders in 2020, thus those hedges are expected to be ineffective.

If management revises its expectations on future fuel purchases, the breakdown between losses type (2) and type (3) will vary.

Thank you Clement for the detailed explanation.
It looks like there is some "flexibility" in determining the hedging losses. Just like banks in the provision of non-performing loan. Some banks are more aggressive than others in the provision.

https://www.businesstimes.com.sg/compani...ights-mcbs

Strategic assets yet insider directors opt not to subscribe, hmm...

(01-06-2020, 10:23 PM)pianist Wrote: https://www.businesstimes.com.sg/compani...ights-mcbs

Strategic assets yet insider directors opt not to subscribe, hmm...

During the rights presentation, they said it is beneficial for shareholders with opportunity for pro-rata participation...….obviously, they do not really believe what they said.

(02-06-2020, 08:08 AM)ACTIVIST SPEAKS Wrote:

(01-06-2020, 10:23 PM)pianist Wrote: https://www.businesstimes.com.sg/compani...ights-mcbs

Strategic assets yet insider directors opt not to subscribe, hmm...

During the rights presentation, they said it is beneficial for shareholders with opportunity for pro-rata participation...….obviously, they do not really believe what they said.

I think somewhere along here in VB, someone mentioned that the rights MCB is not meant for retail investors. It is simply a soft loan to SIA (Heads i win a little, tails i lose big situation) and all right minded OPMIs should let Temasek do this National Service act. Of course, can't rule out the nostalgic "romantic at heart" who wants to do their part!

But i see where you are coming from as i went to read the rights presentation (specifically slide 34/35). It stinks.
But to be honest, anyone who doesn't read beyond the presented numbers and statements, actually aren't suitable to be investing as OPMIs.

rights ppt: https://links.sgx.com/FileOpen/Company%2...eID=610964

If we look at the Structure (of A-B-S) we will be able to conclude. Obviously the directors know that as well.

But I guess they shouldn't use the word "beneficial"... maybe "give shareholders opportunity to participate pro-rata" as per Temasek...

(16-05-2020, 08:35 PM)specuvestor Wrote: MCB is not for investors. It’s to signal to investors and business partners Temasek is backstopping

"MOST directors of Singapore Airlines (SIA) have chosen to let their rights mandatory convertible bonds (MCBs) lapse without exercising them, despite proposing the MCB rights issuance to shareholders as part of larger cash call in April.
SIA chief executive Goh Choon Phong let his provisional allotments in respect of 3.34 million rights MCBs lapse last week, according to a Singapore Exchange filing on Monday.
SIA non-executive chairman Peter Seah also let his allotment of 73,160 rights MCBs lapse last week, filings showed. However, both Mr Goh and Mr Seah have applied to take up all their rights shares, and their actual allocations will be decided at a later date. "

SIAS needs to questioned the CE and chairman already... what this is?? :O :O :O
help the moms and pops opmi!!!!! :O

SIA once a blue chip flying high in the blue sky, now seems to be milked from all directions from various cost centers

(02-06-2020, 04:33 PM)pianist Wrote: SIA once a blue chip flying high in the blue sky, now seems to be milked from all directions from various cost centers

says a lot about their management/board i guess... really lucky/fortunate got temasek/sg gov throw $$$ in....