Posted a couple of months back: And What About MAS Oil Hedges?
- As pointed out by AhBeng in recent AirAsia discussions (see AirAsia Reported Massive Losses Again!!, Comments On AirAsia Exceptional Losses and Reply To Comments On AirAsia Exceptional Losses ) Malaysia Airlines (MAS) only announced its realised hedges and on Star Business today, the following article was published.
In that Star Business article..
- The national carrier does not book any losses as it does not adopt the mark-to-market practice, which essentially means assigning a value to a position held in a financial instrument based on current market price.
And in today's earnings, MAS adopts the mark-to-market practice.
From the company earnings notes.- The Group recorded an operating loss for the quarter of RM137.9 million from a profit of RM66.3 million mainly due to a lower operating revenue in line with declining trend in global travel and cargo movements resulting from the current economic downturn. The Group recorded a loss after tax for the quarter of RM694.8 million from a profit of RM46.6 million after including derivative loss of RM557.0 million with the early adoption of FRS 139.
1 comments:
It also restated accounts from last year. It's shareholder equity is totally wiped out, negative equity ...........! From plus 4.2 billion to minus 446 million.
Is this "hedging"?
Totally insane!
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