Cebu Pacific posted Php3.2 Billion core earnings in FY2014!

Cebu Air Inc. also known as Cebu Pacific Air, posted a Php3.2 Billion core earnings in FY2014.

According to COL Financial:

After experiencing a core net loss of Php15Mil in 3Q14, Cebu Pacific’s operations rebounded in the fourth quarter, with core net income reaching Php866Mil. This is almost five times 4Q13’s net income of Php175Mil. However, taking into account non-core line items, 4Q14 headline net loss was at Php1.2Bil, significantly more than 4Q13’s net loss of Php152Mil. Net income for the quarter was primarily dragged down by hedging losses which amounted to Php2.2Bil. Fourth quarter earnings brought full-year core profits to Php3.2Bil, up 47.7% y/y. FY14 results were in line with COL and consensus estimates, representing 100.2% and 101.8% of full-year forecasts. For 2015, we expect to see further improvement in EBITDA margin brought by the additional decline in oil prices. Moreover, we do not see hedging losses to hit the same level as in 2014, as oil prices have traded within a range of US$43.5 to US$53.5 per barrel during the first three months of the year, not far from the end 2014 price of US$53.3.

photo credit:


Cebu Pacific stocks is currently trading at Php86.00 (as of May 26, 12:00pm).

If you hold a CEB, make sure to buy more (make sure to study the stocks – visit truly rich club to know more about investing)!

According to COL Financial – We are reiterating our BUY rating on CEB with a FV estimate of Php156/sh.