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Monday, November 3, 2014

D-day for MAS (3786) on 6 November 2014

Today saw this on NST website:

“If MAS is able to trim the workforce by 30 per cent, you are looking at an annual saving of about RM700 million."

Yes, it is a good news if it happened, but don't forget the main question is WHY NEED TO DE-LIST MAS TO DO THIS?

Recently we have seen many news about Fuel price, below show you some information I have gather:

Fuel cost MAS RM 3,117,000,000 for YTD 30 June 2014, approx. 43% of total expenditure.

IATA jet fuel price analysis shows drop approx. 17.6% as compare to 1 year ago. (You can see biggest decline only happened recently as shown in the graph below)

A quick simple calculation:
every 1% drop in jet fuel price will provide approx. RM 31 million savings to MAS.
10% drop means approx. RM311 million savings to MAS.




 Jet Fuel Price:
2008 - in June, gone up to approx. USD 180/bbl
2009 - in Feb, gone down to approx. USD 50/bbl (down approx. 72%)
2011 - in Feb, gone up to approx. USD 140/bbl (up approx. 180%)
2012 - approx. USD 134/bbl
2013 - approx. USD 129/bbl

MAS profit/loss:
2009 - approx.  RM 490millions
2010 - approx.  RM 234millions
2011 - approx. (RM 2.52billions)
2012 - approx. (RM 433millions)
2013 - approx. (RM 1.17 billions)

Above shows how Jet Fuel Price, a major expenditure, affected MAS profit/loss.

With current price drop in Jet Fuel, do you still think 0.27 offer by Khazanah is reasonable?

Potential further down in Jet Fuel Price with current World economy growth? I believe so.

Also don't forget the above Jet Fuel Price information didn't take into account:
“If MAS is able to trim the workforce by 30 per cent, you are looking at an annual saving of about RM700 million."

Why Khazanah never highlight Jet Fuel Price in their proposal?
 
As mentioned before Khazanah should offer 0.502 or 0.537 per share if that's what they believe MAS worth for?? [Previous Post]

By offering a price which is lower than what they have invested before, is a plus to them only, don't you think so?

Good luck with your investment & vote !!! ^_*

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