Thai Airways International
Bualuang Securities May 14, 2015 4:48 pm
1Q15 earnings beat forecast; low season to dampen 2Q15 numbers HOLD

Thai Airways International Plc (THAI)

Above expectations

THAI posted a 1Q15 net profit of Bt4,541m, a reversal from net losses posted for 1Q14 and 4Q14. Stripping out an FX gain of Bt9.6bn and an impairment loss on aircraft amounting to Bt11.8bn, 1Q15 core profit was Bt6,691m, a U-turn from core losses posted for 1Q14 and 4Q14. The result was above our forecast and that of the consensus, due to a larger-than-expected tax credit.

Results highlights

The key drivers for the core earnings turnaround were: 1) higher passenger traffic, 2) lower operating expenses, 3) lower SG&A expenses, and 4) a larger tax credit. THAI's 1Q15 revenue passenger kilometers (RPK) were 16,489m, a rise of 12% YoY and 6% QoQ, while the cabin factor was 75.4%, up from 70.1% in 1Q14 and 71.1% in 4Q14. But, passenger yield declined 5% YoY and 1% QoQ to Bt2.60/RPK. Also, total operating expenses fell 13% YoY and 18% QoQ, led by lower jet fuel cost, which slid 41% YoY and 31% QoQ to US$73/bbl. Meanwhile, the SG&A/sales ratio declined to 4.5 percent from 5.4% in 4Q14. The firm also booked a tax credit of Bt2.3bn in 1Q15 against a Bt2.6bn tax expense in 1Q14 and a tax credit of Bt977m in 4Q14.

http://www.nationmultimedia.com/busi...-30260091.html



http://thai.listedcompany.com/newsro...235500450E.pdf