THAI’s Well Management in Impairment of Assets Results in ฿445M. of Profit in 1Q19

Thai Airways International Public Company Limited (THAI) has reported its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

THAI has recorded a net profit in the first quarter of 2019 at THB 445.44 million, decreased 83.60% YoY. Total revenues for the first quarter of 2019 was THB 49,791 million, decreased by THB 3,675 million (6.9%).

On the other hand, Revenues from other activities consists of revenues from business units which are Ground services, Catering, Cargo handling services, and other activities revenue, were THB 3,673 million, increased by THB 216 million (6.2%) over last year.

The main reasons were from revenue from Ground services and Cargo handling services increased from the previous year due to the number of flights of airline customers higher than last year and more revenue from Maintenance services. Catering revenue also increased from higher prices even though the amount of orders by the airline customers is reduced.

 

Impairment loss of assets and aircraft were THB 213 million, a decrease of THB 2,260 million (91.4%) mainly from the impairment loss of aircraft at THB 193 million, THB 2,256 million lower than last year, comprised of more 7 aircraft, including 3 Airbus A330-300, 1 airbus A340-600, 2 Boeing B747-400 Freighter and 1 Boeing B737-400 aircraft, totaling THB 187 million, and 1 spare engine ,totaling THB 6 million, while the previous year had a provision for 15 aircraft.

In addition, on April 27, 2019, THAI had announced the resolution of the 2019 Annual General Shareholder’ Meeting which approved THAI to transfer the appropriated legal reserved at the amount of THB 2,691,275,568 and premium on ordinary shares at the amount of THB 25,545,316,308 to compensate the deficit of THAI.

 

If THAI can maintain its performance, keeping its profit above THB 300 million from 1Q19-4Q19, the company will be able to issue a dividend payment from its 2019 performance.