Swire Pacific First-Half Net Profit More Than Doubled on Year

By Joanne Chiu Features Dow Jones Newswires

Swire Pacific Ltd. (0019.HK) reported a more than doubled first-half net profit, lifted by higher revaluation gains on investment properties despite weaknesses from its aviation, marine services and trading operations.

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The blue-chip conglomerate, whose assets span aviation, beverages and real estate, said Thursday that it recorded a first-half net profit of 12.14 billion Hong Kong dollars (US$1.55 billion), up 140% from HK$5.06 billion a year earlier. Its first-half underlying profit rose 9% to HK$3.88 billion from HK$3.55 billion the previous year.

The company's aviation division reported a loss of HK$678 million in the first half, compared with a profit of HK$978 million last year, weighed by losses contributed from affiliate Cathay Pacific Airways Ltd. (0293.HK) as it reeled under wrong fuel hedging bets and intensifying competition.

The company's first-half revenue rose 34% to HK$40.21 billion from HK$30.08 billion. It declared an interim dividend of HK$1.00 per A-share, the same as last year.

Separately, Swire Pacific's property arm Swire Properties Ltd. (1972.HK) reported a 177% surge in first-half net profit of HK$14.76 billion on higher property sales and revaluation gains.

The real-estate developer's first-half revenue rose 46% to HK$11.53 billion from HK$7.89 billion. It declared an interim dividend of HK$0.25 a share, up 9% from HK$0.23 a share it paid a year ago.

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Write to Joanne Chiu at joanne.chiu@wsj.com

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August 17, 2017 00:44 ET (04:44 GMT)