BOC Aviation half year performance

Eleanor Steed
By Eleanor Steed August 31, 2017 16:55

BOC Aviation half year performance

During the first half of 2017, lessor BOC Aviation increased total revenues and other income by 16% to US$670 million, with net profit after tax up by 13% to US$240 million compared to the prior-year period. Earnings per share of US$0.35, based on Shares outstanding at 30 June 2017. Total assets increased 7% to US$14.4 billion as at 30 June 2017 from 31 December 2016. BOC Aviation maintained strong liquidity with US$333 million in total cash and fixed deposits, and US$4 billion in undrawn committed credit facilities as at 30 June 2017. The lessor also raised more than US$1 billion in new financing during the reporting period, and maintained portfolio utilisation at 99.6% and cash collection from airline customers at 100%.

Robert Martin, Managing Director and Chief Executive Officer, said: “BOC Aviation delivered an excellent result in the first half of 2017, earning a net profit after tax of US$240 million, up 13% compared with the same period last year. The net book value of aircraft, including assets held for sale, increased 25% compared with the first half of last year, to US$12.1 billion, reflecting our investment activities since our initial public offering in June 2016.”

The Board of Directors also announced a change to the dividend policy, increasing the intended annual dividend pay-out to up to 35% of net profit after tax, up from 30% previously.

During the period, BOC Aviation has a portfolio of 297 owned and managed aircraft, with an average aircraft age of 3.1 years and an average remaining lease term of 7.8 years for the owned aircraft fleet, each weighted by net book value. The lessor has an orderbook of 196 aircraft scheduled for delivery over the period from 1 July 2017 to 2021. BOC Aviation also took delivery of 37 aircraft (including three acquired by airline customers on delivery) in the first half of 2017, signed 55 leases, sold 19 aircraft, with no aircraft older than 10 years remaining in the owned portfolio. BOC Aviation has a customer base of 75 airlines in 34 countries and regions in the owned and managed fleet – the latter comprised 36 aircraft.

Eleanor Steed
By Eleanor Steed August 31, 2017 16:55