SMBC Aviation Capital reports half year results

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 21, 2018 23:59

SMBC Aviation Capital reports half year results

SMBC Aviation Capital has reported a 7.5% rise in profit before tax of $168 million for the half year ended 30 September 2018 compared to the year-ago period.  Core lease revenue of $490million was up 3.5% compared to last year on slightly reduced average operating lease assets (-0.5%). The lessor’s reported operating margin was 42.2% compared to 41.5% a year ago.

SMBC Aviation’s aircraft assets are now worth in excess of $11.2 billion, comprising 231 owned aircraft and pre-delivery payments.

During the reporting period, 30.6% of the lessor’s portfolio was transitioned to new technology assets (H1 2017: 15%) with the upward trend set to continue, said the lessor. SMBC Aviation also signed LOIs to place 44 aircraft from our order book with all 2018 and 2019 positions placed; sold eight owned aircraft with average age of 7.9 years, and reported a profit on disposal of $11.4 million. During the half year, the lessor signed a contract for the sale of a 29 aircraft portfolio from its managed fleet.

During the period, the lessor secured $9.2 billion in shareholder support and raised $700million of third party financing including a successful $500million bond issuance in July 2018.

Commenting on the results, Peter Barrett, CEO of SMBC Aviation Capital, said: “I am pleased to report another solid half year performance, driven by our core lease rentals as a result of a transitioning of our portfolio into new technology aircraft, a strong period for trading aircraft and an overall strengthening of our capital base.

This performance again proves the strength of our strategy which has been centred on managing the quality of a young, technologically advanced and fuel efficient portfolio. This is coupled with our approach to risk management and the ongoing support of our shareholders which will be further evidenced with the injection of new capital of $1 billion, expected in the coming weeks.

We are taking advantage of the positive environment in the wider aviation market to continue to deliver for our customers and to optimally position our business as the industry prepares itself for higher fuel prices and interest rates.  We have also created a strong aircraft placement and trading pipeline which alongside the strength of our business positions us well to manage the challenges and take opportunities that a changing operating environment brings.”

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 21, 2018 23:59