SMBC Aviation Capital posts H1 2017 results

Eleanor Steed
By Eleanor Steed November 14, 2017 16:27

SMBC Aviation Capital posts H1 2017 results

SMBC Aviation Capital is reporting a 3% lift in pre-tax profit to $167 million for the six months to the end of September 2017, which compares to H1 2016 pre-tax profit of $162 million. Revenue and other income was $566 million.

SMBC Aviation’s aircraft assets total $10.5 billion, comprising 278 owned and 174 managed aircraft. During the reporting period, the lessor took delivery of seven new aircraft deliveries, six of which are newest technology A320neo and A350 aircraft.  Some 14% of its portfolio is now comprised of newest technology A320neo, A350 and B787 aircraft.

Also during the reporting period, SMBC Aviation sold 13 owned aircraft with an average age of 7.5 years, and contracted sale agreements / letters of intent for the sale of a further 38 aircraft, including a portfolio of 20 aircraft to Aircastle.

The lessor raised $500 million in new funding through a bond issuance in July 2017 and secured a shareholder capital injection of up to $1 billion by 31 March 2019.

“We are pleased with our performance in the first half of the year,” said Peter Barrett, CEO of SMBC Aviation Capital. “We have again seen significant activity in our trading business and have taken advantage of the increased demand for good quality assets to selectively trade aircraft, in line with our strategy of trading through the cycle.  In the year to date we have closed 13 sales, with contracts and letters of intent for sales of a further 38 aircraft, including our 20 aircraft deal with Aircastle.

He adds: “Furthermore, last week’s announcement from our shareholders that they are to provide up to USD $1billion in capital to the company, coupled with our bond programme which raised USD $500 million in July, means that we are well positioned to fund our future expansion plans.”

Eleanor Steed
By Eleanor Steed November 14, 2017 16:27