SMBC Aviation Capital half year results

Eleanor Steed
By Eleanor Steed November 23, 2016 16:07

SMBC Aviation Capital half year results

SMBC Aviation Capital has reported revenue of $502.8 million for the first half of 2016, which is an increase of 19.2% compared to H1 2015. Profit before tax was up 29.6% to $142.9 million. The lessor owns aircraft assets in excess of $9.6 billion, comprising 273 owned and 180 managed aircraft.

During the reporting period, SMBC Aviation Capital closed 48 transactions, delivered 14 new aircraft, including its first A320 NEO and three B787s. The lessor extended 10 leases with existing customers, and transitioned 13 aircraft to new lessees. Some 11 owned aircraft were sold during the period, which had an average age of 8.3 years, and contracted sale agreements / letters of intent signed for the sale of a further 16 aircraft with an average age of 10.3 years.

SMBC Aviation Capital has 99.97% aircraft utilisation in owned fleet, reflecting high quality asset base. During the period, the company entered into eight new Japanese Operating Lease with a Call Option (JOLCO) transactions and issued a $500 million inaugural bond that closed on 19 July 2016

Commenting on the results, Peter Barrett, CEO of SMBC Aviation Capital, said: “We are pleased to have delivered another six months of profitable growth. The strong fundamentals of the global aircraft leasing industry, together with our disciplined approach to asset selection and risk and portfolio management, as well as our focus on providing our customers with the most technologically advanced aircraft, have continued to yield strong results.

In July, we closed a $500 million senior unsecured notes offering. This was an important step forward for the company as we continue to diversify our sources of funding, and we have been encouraged by the market’s reaction to our investment case.

Another highlight of the period has been the number of aircraft coming off lease, which we were able to transition efficiently to new customers, including Jeju Air. This is further proof of our ability both to secure new commercial relationships and to manage significant aircraft modification programmes.

The company has continued to trade well since the period end, and we remain confident in the future prospects for SMBC Aviation Capital.”

Eleanor Steed
By Eleanor Steed November 23, 2016 16:07