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Kenya Airways...why ignore..
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Spikes wrote:obiero wrote:maka wrote:obiero wrote:VituVingiSana wrote:From Genghis/Business Daily:
"The national carrier had by March last year put in place hedging contracts for 79 per cent of its anticipated fuel requirements up to March 31, 2016 and 40 per cent of requirements to March 2017, when the fuel hedge contracts."
“Therefore, we anticipate that the company will still report losses on their fuel derivatives at the end of this financial year 2016, due to the falling oil prices. After the expiry of the contracts, the airline is expected to position itself to benefit from the falling oil prices,” said the Genghis analysts. Old news. No one sane person expects a profit by March 2016.. 18 months.... 18 months from July 2015, implying Q3 2016-2017 not 18 months . 4years by 2020...We have enough time to accumulate. Too obvious for anyone, even wanjiku knows it.And the CEOS will have been roasted by the pilots beyond recognition. You can not touch this. At a net profit of 10 bs, 33/10 approximates to four years of not turn around but solid profitable years to recover from losses. So add 2 years of turnaround and one year of restructuring and get seven years before celebration mood kicks in. Those who enjoyed a successful morning glory today will be counting the sixth birthday for their bouncing baby. Utaweka maji kwa glass ndio upate chums za maternity, pampers, day care all the way to class one.  ,Behold, a sower went forth to sow;....
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Rank: Hello Joined: 2/2/2016 Posts: 3
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I'm new to the forum, but I want to give my two cents.
People blame the company for hedging fuel, but it was the most strategic thing to do at that time. Its a risk to the company but it gives them stability when the prices kept shooting up. American Airlines went bankrupt when the fuel prices went up, did people blame them for not hedging? Delta still hedges and declares profits. What the management is to blame for is their lack of research and what made them make the decision to hedge for such a long period. What type of analysis did they do to come to that decision.
The airline went into project mawingu without a plan. What happened to opening 3 destinations every year? They just brought in planes to replace their so called aging fleet. Does anyone here know how old those 777s were that they claimed were old. Please go to any airlines website and download their financial results, and look at their fleet information. AirFrance retired their 747 fleet after 40yrs of service.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Spikes wrote:obiero wrote:maka wrote:obiero wrote:VituVingiSana wrote:From Genghis/Business Daily:
"The national carrier had by March last year put in place hedging contracts for 79 per cent of its anticipated fuel requirements up to March 31, 2016 and 40 per cent of requirements to March 2017, when the fuel hedge contracts."
“Therefore, we anticipate that the company will still report losses on their fuel derivatives at the end of this financial year 2016, due to the falling oil prices. After the expiry of the contracts, the airline is expected to position itself to benefit from the falling oil prices,” said the Genghis analysts. Old news. No one sane person expects a profit by March 2016.. 18 months.... 18 months from July 2015, implying Q3 2016-2017 not 18 months . 4years by 2020...We have enough time to accumulate. actually you have until 2026 to accumulate assuming it starts printing 3 billion net every year from now. good luck!
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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obiero wrote:VituVingiSana wrote:From Genghis/Business Daily:
"The national carrier had by March last year put in place hedging contracts for 79 per cent of its anticipated fuel requirements up to March 31, 2016 and 40 per cent of requirements to March 2017, when the fuel hedge contracts."
“Therefore, we anticipate that the company will still report losses on their fuel derivatives at the end of this financial year 2016, due to the falling oil prices. After the expiry of the contracts, the airline is expected to position itself to benefit from the falling oil prices,” said the Genghis analysts. Old news. No one sane person expects a profit by March 2016.. Enjoy. Meanwhile, some 'new' news... I expect a profit to be announced for KK for 2015. And the word on the street is that KK is making hay while the oil prices remain low. [Lower financing costs]. *Please fill up at KK. KQ to pay cash. Thank you. Come Again.* *Please reinsure with KenRe. Thank you. Pay Again* Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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This article applies to KQ. Project Mawingu was too ambitious or simply an avenue for corruption. http://www.businessdaily.../-/12jrqb0z/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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littledove wrote:maka wrote:http://www.standardmedia.co.ke/ktnhome/video/watch/2000103018/business-today-29th-january-2016-kq-faces-turbulent-financing-times
This is the guy who should be CEO... They have hedged up to september 2016, and they are unlikely to stop hedging!! surely they are not ready to learn or what now This is the time to hedge and lock in these low prices. They should opt to go for it when the market hits a new low, and hedge atleast 50% of it. I dont see the prices remaining down there for a long time. Hedging is a financial strategy. How you apply it is what matters, note KQ at one time saved up alot of $$ from hedging. The most profitable airline (south west) has always hedged and when oil hit $110 they were still buying at $50 "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Mmm...what would @vvs do in this case when his chances came & went? Oh! Oh! I know!! I know!! witch hunt! Loser... Brush up on business cycles while you're at it and MYOB. Buffett this, Buffett that. KQ this, KQ that - argh. Ptho! ExxonMobil reports 58% drop in profit Quote:As with other petroleum companies, ExxonMobil saw a massive decline in income from exploration and production of crude oil, known as "upstream" in oil parlance. Earnings in this area fell to just $857 million from $4.6 billion in the year-ago period. http://www.news24.co.ke/...drop-in-profit-20160202
KQ is the best play in the market and you know it!
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Rank: Elder Joined: 6/23/2009 Posts: 14,251 Location: nairobi
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Cde Monomotapa wrote:Mmm...what would @vvs do in this case when his chances came & went? Oh! Oh! I know!! I know!! witch hunt! Loser... Brush up on business cycles while you're at it and MYOB. Buffett this, Buffett that. KQ this, KQ that - argh. Ptho! ExxonMobil reports 58% drop in profit Quote:As with other petroleum companies, ExxonMobil saw a massive decline in income from exploration and production of crude oil, known as "upstream" in oil parlance. Earnings in this area fell to just $857 million from $4.6 billion in the year-ago period. http://www.news24.co.ke/...drop-in-profit-20160202
KQ is the best play in the market and you know it! BP has also taken a major knock.. This oil thing isnt going too well.. @wazuans better know KK is a shaky investment going by current market situation
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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obiero wrote:Cde Monomotapa wrote:Mmm...what would @vvs do in this case when his chances came & went? Oh! Oh! I know!! I know!! witch hunt! Loser... Brush up on business cycles while you're at it and MYOB. Buffett this, Buffett that. KQ this, KQ that - argh. Ptho! ExxonMobil reports 58% drop in profit Quote:As with other petroleum companies, ExxonMobil saw a massive decline in income from exploration and production of crude oil, known as "upstream" in oil parlance. Earnings in this area fell to just $857 million from $4.6 billion in the year-ago period. http://www.news24.co.ke/...drop-in-profit-20160202
KQ is the best play in the market and you know it! BP has also taken a major knock.. This oil thing isnt going too well.. @wazuans better know KK is a shaky investment going by current market situation I thought we were told tukunywe mafuta kk gas station and on our way home we get an insurance with Ke-re .why confuse us 
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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obiero wrote:Cde Monomotapa wrote:Mmm...what would @vvs do in this case when his chances came & went? Oh! Oh! I know!! I know!! witch hunt! Loser... Brush up on business cycles while you're at it and MYOB. Buffett this, Buffett that. KQ this, KQ that - argh. Ptho! ExxonMobil reports 58% drop in profit Quote:As with other petroleum companies, ExxonMobil saw a massive decline in income from exploration and production of crude oil, known as "upstream" in oil parlance. Earnings in this area fell to just $857 million from $4.6 billion in the year-ago period. http://www.news24.co.ke/...drop-in-profit-20160202
KQ is the best play in the market and you know it! BP has also taken a major knock.. This oil thing isnt going too well.. @wazuans better know KK is a shaky investment going by current market situation You've been following. Good. Your technical handling of KQ needs to improve. My assessment is little effort put ndugu! [S/o @evak! Great handling & tutoring. Nice rejoinder on the dent/stabilizer issue, ouch to that fella..] All the best Obiero and I hope your rotation from Coop FY to KQ will be timely and profitable ;-) Major de-risking is underway.
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