Investor Presentaiton
FINANCE
Finance outlook
Fuel hedging update
•
•
Protect against unfavourable movements in Fuel and
FX, while not locking in a competitive disadvantage
Rolling two-year horizon considered the optimal
term for these financial risk management strategies
$4.50b
Hedging & Fuel Cost Outlook ¹ ($b)
Inclusive of Option Premium
•
Enable sufficient time for operational adjustments to
be made (capacity, pricing, network)
$3.95b2
$3.92b
worst case
total fuel cost
$3.95b³
$3.87b4
current
forward
market price
total fuel cost
FY16 worst case total fuel cost in line with FY15,
74% participation to lower fuel prices4
74% participation
to lower fuel prices
•
All fuel hedging effective at current market prices¹
FY14 (Act)
FY15 (Fcst)
FY16 (Fcst)
1. As at 11 May 2015. 2. Worst case total fuel cost based on a 2-standard deviation move in Brent forward market prices to A$95/bbl, for the remainder of FY15. 3. Worst case total fuel cost based on constant 34
FY15 consumption and a 2-standard deviation move in Brent forward market prices to A$122/bbl, for FY16. 4. Using constant FY15 consumption and a Brent forward market price of A$87/bbl for FY16.View entire presentation