MAS Posts Record Net Profit Of RM851 Million

PETALING JAYA, Feb 25 (Bernama) -Malaysia Airline System Bhd (MAS)posted its highest profit in its 60-year history and confirmed its turnaround with a record net profit of RM851 million for the financial year ended Dec 31, 2007, a swing of RM987 million compared to the RM136 million in losses a year ago.The financial performance surpassed its previous record net profit of RM461 million in 2004.Its revenue increased 13 percent to RM15.3 billion from RM13.5 billion due to strong passenger demand and sustained yield improvements.Operating profit improved to RM798 million from a RM296 million loss previously on the back of a robust 71.5 percent passenger load factor and yield which rose 12 percent to 27 sen per revenue passenger kilometre (RPK).Managing director and chief executive officer Datuk Seri Idris Jala today described the growth as testament to Malaysia Airlines' life-changing transformation from a close to bankrupt airline in 2005 to one that achieved record profits in 2007 via its Business Turnaround Plan (BTP) while maintaining its reputation for excellent services."We have exceeded all of our financial targets and surpassed our 2007 stretch target of RM300 million by 184 percent and our 2008 target of RM500 million by 70 percent," he told a media briefing on the airline's financial year result here.Jala said the financial year net profit of RM851 million was driven by operational improvement amounting to RM2.6 billion over the RM1.7 billion base case loss in 2005.The one-off gain from sale of aircraft and properties is offset by the one-off provision for aircraft maintenance and overhaul, he said.Jala also said that in view of the record performance, which marks the successful achievement of the turnaround, the board of directors will recommend at its annual general meeting in June a final dividend of 2.5 sen per share, the airlines' first dividend payout since financial year 2004/2005.The proposed dividend of RM41 million is the highest in 10 years, and will be paid on a date to be determined and is subject to shareholders' approval.In the fourth quarter, MAS' net profit doubled to RM242 million from RM122 million in the corresponding quarter in the previous year.Revenue rose eight percent to RM4.1 billion from RM3.8 billion while operating profit more than doubled to RM245 million from RM116 million.Passenger load factor also remained strong, at 70.8 percent while yield rose 13 percent to 29 sen per RPK, the company's highest ever.Jala said MAS has approved bonuses to all its staff which will be announced in March.He also said that MAS believes that it could achieve more than RM1 billion profit this year, taking into consideration that jet fuel price could remain constant at US$91 per barrel."Barring unforeseen circumstances, we aspire to achieve our stretch profit target of RM1 billion in 2008 and double or even triple that by 2012," he said.The national airline currently has a healthy cash position of RM5.3 billion which Jala said will be used to grow the company.Asked whether MAS is looking at mergers and acquisitions, he said: "I believe that MAS is in the comfortable position to grow organically and when the opportunities arrive, we will look at them very seriously."On the purchase of A380 aircraft whose delivery has been delayed, MAS chief financial officer Tengku Azmil Zahruddin said discussions are still ongoing with Airbus."We are still talking but we have not finalised anything yet," he said, adding that MAS will consider any options that will benefit the company.