Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the six months ended June 30, 2023.
Selected Financial Highlights:
| Six Months Ended | ||
| US$ millions | Jun 30, 2023 | Jun 30, 2022 |
| Total Revenue | 670.1 | 582.8 |
| Profit for the period before exceptional items (1) | 141.1 | 140.1 |
| Exceptional Items, net of tax | – | (537.9) |
| Operating Cash Flow | 643.4 | 678.5 |
| Adjusted Pre-Tax Profit Margin (1) | 22.4% | 23.0% |
| Adjusted Pre-Tax Return on Equity (1) | 10.3% | 8.8% |
| As at | ||
| US$ millions | Jun 30, 2023 | Dec 31, 2022 |
| Total Assets | 12,224.4 | 12,709.1 |
| Net Loans and Borrowings | 7,602.2 | 8,045.9 |
| Available Liquidity | 2,330.7 | 2,659.9 |
| Net-Debt-to-Equity | 2.50x | 2.64x |
| Unsecured Debt Percentage | 73.3% | 69.8% |
- 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 six months ended June 30, 2022.
- Revenue increased by 15% to US$670.1 million
- Profit before tax and exceptional items increased by 13% to US$150.4 million
- Available liquidity of US$2.3 billion; Liquidity Coverage Ratio of 281%
- Net Debt-to-Equity of 2.50x; Unsecured Debt Percentage of 73.3%
- Open market bond repurchases of US$307 million
Selected Business & Operational Highlights:
- Number of aircraft acquired: 7 (owned: 2; managed: 5)
- Number of aircraft sold: 16 (owned: 10; managed: 6)
- Lease agreements, extensions and amendments signed: 64 (owned: 48; managed: 16)
- Customers: 117; Countries: 60
- Owned Fleet Average Age (years): 7.1
- Owned Fleet Average Lease Term Remaining (years): 6.0
- DAE Capital Percentage of Next Generation, Fuel Efficient Aircraft: 50.3%
- DAE Engineering Available Man Hours: 0.7 million; Number of Aircraft Inductions: 177
- Published third annual ESG Report, available on our website, complete with independent external limited assurance audit verification; published CDP and S&P CSA disclosures post-quarter-end
- Fitch Ratings Outlook revised to Positive from Stable.
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our first half 2023 results continue to demonstrate the strong demand we are seeing in the market for aircraft from our airline customers. COVID-era deferral programs are being repaid ahead of schedule and secondary market aircraft valuations remain robust. This resulted in revenue growth of 15% compared to the first six months of 2022.
We have continued with our program of active liability management, repurchasing a further US$102 million of principal amount of our bonds during the quarter, bringing the total to US$307 million in the first six months of 2023. We had US$368 million of remaining bond repurchase authorization at the end of the quarter. Our liquidity coverage ratio remains exceptionally strong at 281%, and our available liquidity is US$2.3 billion.
Our profitability metrics continue to trend towards pre-pandemic levels. The resilience of our business model continues to be demonstrated by the strength of our credit quality and funding metrics in the quarter. In addition, during the quarter, Fitch Ratings revised its Outlook on DAE to Positive from Stable.
DAE Engineering continues to increase its global footprint and grow its widebody maintenance offering with expanding relationships in Asia Pacific and the Americas. During the quarter, Joramco announced that Joramco Academy, one of the few training institutions in the Middle East with EASA approval, is extending its training offering with expansion in Ghana through a partnership with locally based Aerojet Aviation.”
Webcast and Conference Call:
In connection with the announcement of DAE’s results for the six months ended June 30, 2023, management will host a conference call on Wednesday, 02 August 2023 at 09:00 EDT / 14:00 BST / 17:00 GST / 21:00 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.
