Air New Zealand Fuel Hedge Disclosure as at 13 August 2019
UnitsFY20 Q1FY20 Q2FY20 Q3FY20 Q4FY20 H1FY20 H2
Jul-SeptOct-DecJan-MarApr-JunJul-Dec 2019Jan-Jun 2020
Brent Collars
VolumeBarrels1,962,5002,025,0001,487,500687,5003,987,5002,175,000
Ceiling PriceUSD72.3266.3667.1964.7569.2966.42
Floor PriceUSD59.7155.9856.8155.5257.8156.40
Barrels1,962,5002,025,0001,487,500687,5003,987,5002,175,000
Barrels2,382,5392,412,4852,562,9342,227,1254,795,0244,790,059
82%84%58%31%83%45%
USD(2,881,463)(2,190,119)(3,722,853)(741,989)(5,071,582)(4,464,842)
USD(5,269,500)(4,143,750)(2,710,625)(1,130,125)(9,413,250)(3,840,750)
USD(8,150,963)(6,333,869)(6,433,478)(1,872,114)(14,484,832)(8,305,592)
Brent Call Spreads (3)
VolumeBarrels800,000262,5001,062,500
Bought CallUSD64.2762.0063.71
Sold CallUSD68.9967.3668.59
Jet-Brent Crack Spreads (4)
VolumeBarrels850,000962,500787,500625,0001,812,5001,412,500
PriceUSD16.0917.2817.1715.7716.7316.55
Notes:
Brent spot was US$61 and 12 month Brent was US$59. As at 13 August 2019, Air New Zealand had no WTI hedges.
Singapore Jet Spot was US$76 and 12 month Singapore Jet was US$74.
(1) Compensation from fuel hedges is the sum of the mark-to-market value of all fuel hedges as at 13 August 2019.
(3) Brent Call Spreads lower the ceiling price of existing collar structures.
Volume: Fuel volume is reported in barrels for passenger aircraft (42 US gallons in a barrel).
Price: Price is quoted in USD cost per barrel of Brent and Singapore Jet.
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(2) Net compensation from fuel hedges represents the unrealised gains and losses on fuel hedges. These gains and losses will be accounted for in line with Air New Zealand Limited’s fuel instrument accounting
policy. The effective portion of changes in the intrinsic value and time value of fuel derivatives is recognised through Other Comprehensive Income. Any accounting ineffectiveness is recognised through earnings.
(4) Jet-Brent Crack Spreads lock in the margin between the Singapore Jet and Brent Crude prices; Air New Zealand has entered into Jet-Brent Crack Spreads to actively manage the volatility of the spread between Singapore
Jet and Brent Crude prices.
Purchase cost of options
Net compensation from hedges (2)
Air New Zealand Limited
Fuel Hedge Position as at 13 August 2019
Total hedged volume
Estimated fuel consumption
Hedged volume as proportion of total
Compensation from fuel hedges (1)
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- AIA — Auckland International Airport Limited: AIA – FY19 Annual Results2019-08-21
“18. Financial assets and liabilities CONTINUED The details of the hedging instruments as at 30 June 2019 are as follows: Currency Average rate Maturity (years) Notional amount of hedging instrument Statement of financial position line item Carrying amount of the hedging instrum…”
- SPK — Spark New Zealand Limited: Spark New Zealand H2 FY19 Results2019-08-20
“Spark New Zealand Annual Report 2019Bringing the future faster Bringing the future faster 78 Notes to the financial statements Notes to the financial statements: Financial instruments The details of the hedging instruments are as follows: NOTIONAL AMOUNT OF HEDGING INSTRUMEN…”