Yes, it does mean that we may be able to write back some of the fuel hedge provisions on the balance sheet – a sort of perverse fuel hedge if you like
Actually, Mr Rhodes, the mark-to-market fuel hedging losses are carried on the P&L sheet not the Balance Sheet - this is why we declared a LOSS last year. Now the fuel price has increased again, we stand to declare some US$1085 million (HK$ 8,463 million) onto the earnings side of our P&L less any realised hedge losses in the first 5 months of 2009. This is taken from the Company Report 2009 sensitivity analysis on fuel price based on the price on Friday of Brent Crude at US$ 58.40 per barrel.
Go on, Mr Rhodes, tell us how much the profit is for the first QTR.
Of course, this is not a cash profit but merely a accounting procedure - just the same as the fuel hedging loss for 2009 was not cash.
The only significant cash loss for 2009 was - yep, you've guessed it - HK$ 468 million paid in cash to the US Department of Justice.
I guess that you will need to check with your "grown ups" before putting out any more financial opinions.
FF