Dubai, U.A.E. – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the three months ended March 31, 2023.
Selected Financial Highlights:
|Three Months Ended|
|US$ millions||Mar 31, 2023||Mar 31, 2022|
|Profit for the period before exceptional items (1)||69.2||46.6|
|Operating Cash Flow||283.8||357.0|
|Exceptional Items, net of tax||–||(537.9)|
|Adjusted Pre-Tax Profit Margin (1)||23.3%||15.3%|
|Adjusted Pre-Tax Return on Equity (1)||9.9%||6.1%|
|US$ millions||Mar 31, 2023||Dec 31, 2022|
|Net Loans and Borrowings||7,901.4||8,045.9|
|Unsecured Debt Percentage||70.4%||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 three months ended March 31, 2022.
- Profit before exceptional items increased 49% to US$69.2 million
- Cash flow from Operating Activities of US$283.8 million
- Available liquidity of US$2.6 billion; Liquidity Coverage Ratio of 309%
- Net Debt-to-Equity of 2.47x
- Open market bond repurchases of US$205 million
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our first quarter 2023 financial results reflect a strong operating environment for airlines, an improving collections and credit profile, and profitable divestment activity. We have successfully integrated the acquisition of SKY Fund I into our platform following the acquisition in the fourth quarter of 2022.
Our profitability metrics improved substantially during the quarter, and our credit quality and liquidity metrics remained strong. Interest rate volatility allowed us to repurchase US$205 million of principal amount of our bonds during the quarter. We have increased our bond repurchase authorization following additional repurchases in the second quarter.
DAE Engineering continues to expand its offering and reach new milestones. We commenced over 80 checks in the first quarter of 2023, and announced a number of new maintenance agreements, including with Air Europa and Emirates.”
Webcast and Conference Call:
In connection with the announcement of DAE’s results for the three months ended March 31, 2023, management will host a conference call on Wednesday, 03 May 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.
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.