One of the largest aircraft leasing companies in the world, Dubai Aerospace Enterprise Ltd (DAE) reported total revenue of $672.6 million for the six months ended 30 June 2020 compared to $735.2 million in the same period last year.
DAE witnessed a drop in its net income to $121.7 million for the first half of the year compared to $197.1 million in the same period last year.
Other highlights
Pre-Tax Profit Margin was at 20% compared to 29% in H1 2019
Pre-Tax Return on Equity is 8.9% compared to the H1 2019 number of 12.5%
Net Debt-to-Equity decreased to 2.51x from 2.64x at the end of last year.
Unsecured Debt as a percentage of Total Debt remained unchanged at 62% compared to the numbers at the end of last year.
Liquidity available increased to $2,818 million from $2,404 million at the end of last year.
Unencumbered Assets were at $6.5 billion compared to $6.1 billion at June 2019.
Fleet Utilization witnessed a slight drop to 99.2% compared to 99.3% at the same period last year.
Firoz Tarapore CEO – DAE
“Our financial results for the first half of 2020 were characterized by excellent and abundant liquidity, strengthening the balance sheet and lower reported profitability. The reported Net Income in H1 2020 was lower attributable primarily to 23 fewer aircraft in the Owned Aircraft portfolio, fewer asset sales resulting in lower gains on the sale of assets, reduced finance income, and higher provisions for trade receivables offset by lower interest expense.”
”To date, we have provided meaningful rent deferral solutions that created value for both our clients and DAE. As of July 31, 2020, we have granted rent deferral requests from 34 airlines totaling aggregate rent of approximately 16 percent of annual reported revenue. We are currently evaluating rent deferral requests from an additional 24 airlines totaling aggregate rent of approximately 13 percent of annual reported revenue. We expect to provide additional assistance to our clients and we also expect arrears to climb,” said the Chief Executive.
Mr. Tarapore further added that ”As of June 30, 2020, we had US$2.8 billion of cash and available liquidity. During the first half of the year, we repurchased US$187 million of our bonds and have US$229 million of remaining repurchase authorization.
Fitch Ratings affirmed our investment-grade unsecured debt rating in early July,” Tarapore concluded.
