DAE announces Financial Results for the nine months ended September 30, 2022

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Dubai, U.A.E: Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the nine months ended September 30, 2022. The consolidated financial statements can be found here.

Selected Financial Highlights:

  Nine Months Ended
US$ millions Sep 30, 2022 Sep 30, 2021
Total Revenue 853.9 925.3
Profit for the period before exceptional items (1) 203.6 90.5
Operating Cash Flow 956.6 799.7
Exceptional Items, net of tax (537.9)
     
Adjusted Pre-Tax Profit Margin (1)(2) 23.5% 14.5%
Adjusted Pre-Tax Return on Equity (1)(2) 8.7% 6.0%
     
  As at
US$ millions Sep 30, 2022 Dec 31, 2021
Total Assets 11,320.1 12,609.6
Net Loans and Borrowings 6,950.8 7,813.7
Available Liquidity 2,803.1 2,910.3
     
Net Debt to Equity 2.35x 2.54x
Unsecured Debt Percentage 72.1% 69.8%

 

  1. 2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia. In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of US$576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the nine months ended September 30, 2022.
  2. 2021 results are adjusted to exclude one-time bond redemption costs of US$38.3 million incurred during the nine months ended September 30, 2021.
  • Profit before exceptional items increased 125% to US$203.6 million
  • Cash flow from Operating Activities increased 20% to US$956.6 million
  • Available liquidity of US$2.8 billion; Liquidity Coverage Ratio of 743%
  • Net Debt-to-Equity of 2.35x
  • Bond repurchases of US$135 million

Selected Business and Operating Highlights:

  • Number of aircraft acquired: 45 (owned: 10; managed: 35)
  • Number of aircraft sold: 35 (owned: 12; managed: 23)
  • Lease agreements, extensions, and amendments signed: 125 (owned: 95; managed: 30)
  • Owned portfolio revenue utilization: 98%
  • Owned portfolio cash collections rate (3)103%
  • Completed a voluntary ESG disclosure to CDP
  1. Cash Collection Rate is defined as the sum of all cash collected from lease rentals as a percentage of the total contracted receivables due for the period after incorporating the effect of any lease amendment or deferral agreements executed as of September 30, 2022.

Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “The global shortage of aircraft availability and a rising interest rate environment is resulting in higher lease rental rates and robust residual values for the existing fleet. We continue to see demand for aircraft from airlines globally as travel demand remains resilient.

We have remained active in the secondary trading market, both acquiring and divesting assets through this channel. In early October, we announced the acquisition of Sky Fund I Irish, Limited, a company with a fleet of 36 modern aircraft. The acquisition of this very young, predominantly next generation fleet of aircraft advances our stated goal of maintaining a modern fleet of fuel-efficient aircraft. Upon the close of this acquisition, nearly 50% of our fleet will be comprised of next generation, fuel-efficient aircraft. We also continued to enhance our ESG standing globally with a voluntary disclosure to CDP, one of the world’s leading environmental disclosure platforms, thus furthering our commitment to transparency and disclosure of the environmental impacts of our business.

DAE Engineering achieved yet another quarter of record revenues as it continues to execute its multi-year strategic roadmap. With all hangar space fully committed for the final quarter of the year, we expect DAE Engineering to record its strongest year ever in 2022.”

Webcast and Conference Call

In connection with the announcement of DAE’s results for the nine months ended September 30, 2022, management will host a conference call on Thursday, November 03, 2022 at 09:30 EDT / 13:30 GMT / 17:30 GST / 21:30 SGT.

The call can be accessed live by clicking here from your laptop, tablet, or mobile device, or by dialing one of the global dial-in numbers and quoting ‘Dubai Aerospace Enterprise’ when prompted.

Forward Looking Statements

Certain information contained in this Press Release may constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “continue”, “expect”, “anticipate”, “predict”, “project”, “plan”, “estimate”, “budget”, “assume”, “potential”, “future”, “intend” or “believe” or the negatives thereof or other comparable terminology. These statements reflect DAE’s current expectations and assumptions and involve known and unknown risks regarding future events, results or outcomes and are not guarantees of future results or financial condition. Actual results, performance, achievements, or conditions may differ materially from those in the forward‐looking statements and assumptions as a result of a number of factors, many of which are beyond DAE’s control.

Non-IFRS Financial Information

This Press Release may include certain non-IFRS financial information, such as Adjusted EBITDA, not prepared in accordance with IFRS. Because of the limitations of Adjusted EBITDA, it should not be considered as a substitute for financial information prepared or determined in accordance with IFRS, as applicable. Where applicable, DAE compensates for these limitations by relying primarily on its IFRS results and using Adjusted EBITDA only for supplemental purposes.

About DAE

Dubai Aerospace Enterprise (DAE) Ltd is a globally recognized aviation services corporation with two divisions: DAE Capital and DAE Engineering. Headquartered in Dubai, DAE serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle.

DAE Capital is an award-winning aircraft lessor and financier with an owned, managed, committed, and mandated to manage fleet of approximately 450 Airbus, ATR and Boeing aircraft with a fleet value exceeding US$15 billion. DAE Engineering provides regional MRO services to customers in Europe, Middle East, Africa, and South Asia from its state-of-the-art facility in Amman, Jordan, accommodating up to 17 wide and narrow body aircraft. It is authorized to work on 15 aircraft types and has regulatory approval from over 25 regulators globally.