SMBC Aviation Capital reports annual results

Eleanor Steed
By Eleanor Steed June 14, 2017 17:24

SMBC Aviation Capital reports annual results

SMBC Aviation Capital has reported strong results for the financial year ended 31 March 2017. The lessor has posted an 11% increase in revenue and other operating income to $1,162 million (2016: $1,046 million), driven by investments in young aircraft combined with strong aircraft trading activity. Operating profit was up 25% to $661 million (2016: $530 million) and Profit before Taxation up 48% to $346 million (2016: $233 million). SMBC’s aircraft assets increased by 3% to $10.5 billion; the lessor has 670 owned, managed and committed aircraft at year-end.

During the past year, SMBC completed 111 transactions, including its first deliveries of newer technology Airbus A320neo and Boeing 787 aircraft, with its first A350 delivered since year-end. SMBC has sold 39 aircraft from its portfolio to 24 investors, 20 of which are new customers. SMBC’s weighted average fleet age is now 4.5 years. The lessor’s credit ratings were recently upgraded to A- from BBB+ by Fitch Ratings. Also, this year, SMBC completed its $500m inaugural bond issuance, which closed in July 2016

“This has been another year of strong financial and operational growth, which is testament to the strength of our strategy of continued investment in young aircraft, combined with trading through the cycle,” said Peter Barrett, CEO, SMBC Aviation Capital. “The delivery of the newest technology aircraft has commenced with the placement on sale and leaseback over the year of four A320neos, seven Boeing 787-8s and our first A350 since year end.  We are pleased with the global footprint of our business, particularly with activity in Asia.”

“It is now five years since we were acquired by Sumitomo Mitsui Financial Group and Sumitomo Corporation,” he adds. “The strength of this relationship this year alone, has resulted in a collaboration on more than $2.2 billion of JOL and JOLCO (Japanese operating leases with call options) for our customers.  We also further diversified our funding base during the year raising $500 million from the launch of our inaugural bond in July 2016.”

Eleanor Steed
By Eleanor Steed June 14, 2017 17:24