- 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.
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.
ReplyDeleteIs this "hedging"?
Totally insane!