BOC Aviation Reports 1H 2019 Performance
China Aviation Daily | Aug. 16, 2019
BOC Aviation Limited is pleased to announce its unaudited results for the six months ended 30 June 2019.
Robert Martin, Managing Director and Chief Executive Officer, said, "We have just achieved a major milestone in June 2019 as our cumulative net profit after tax ("NPAT") exceeded US$4 billion since inception. BOC Aviation reported NPAT of US$321 million in the first half of 2019, an increase of 8% compared with the same period last year. Revenue rose 13% to US$930 million from US$825 million, and our fleet net book value grew 6% to US$15.9 billion from 31 December 2018, as we continued to take delivery of modern, fuel efficient aircraft. The 8% rise in the interim dividend declared underpins our continued focus on delivering good long-term returns for our shareholders."
Financial Highlights
Our financial highlights for the six months ended 30 June 2019 are:
- Total revenues and other income rose 13% to US$930 million
- Net profit after tax was US$321 million, an increase of 8% over the first half of 2018
- Earnings per share of US$0.46
- Interim dividend of US$0.1388 per share
- Total assets increased 5% to US$19.2 billion as at 30 June 2019 from 31 December 2018
- Maintained strong liquidity with US$295 million in total cash and short-term deposits, and US$3.5 billion in undrawn committed credit facilities as at 30 June 2019
- Raised more than US$1.5 billion in new financing
- Portfolio utilisation and cash collection from airline customers of 99.6% and 97.2%, respectively
Portfolio and Operational Highlights
Our operational transactions as at 30 June 2019 included:
- A portfolio of 499 owned, managed and committed aircraft1
- Owned fleet of 314 aircraft, with an average age of 3.1 years and an average remaining lease term of 8.2 years, each weighted by net book value
- Orderbook of 162 aircraft1
- Took delivery of 25 aircraft, including five acquired by airline customers on delivery, in the first half of 2019
- 18 aircraft scheduled for delivery in the first half of 2019 were delayed, comprising 12 Airbus aircraft delayed primarily due to industrial constraints and six Boeing aircraft delayed primarily due to the 737 MAX grounding
- Signed 39 lease commitments in the first half of 2019
- Customer base of 92 airlines in 40 countries and regions in the owned and managed fleet
- Sold 11 aircraft, including two managed aircraft
- Managed fleet comprised 23 aircraft
- Repossessed five owned and three managed aircraft from airlines that had ceased operations, and delivered all eight aircraft to new customers
Key Financial Data
Unaudited 6 months ended 30 June | ||
| 2019 | 2018 |
| US$'m | US$'m |
Statement of Profit or Loss |
|
|
Revenues and other income | 930 | 825 |
Costs and expenses | (579) | (495) |
Profit before income tax | 352 | 329 |
Net profit after income tax | 321 | 297 |
Unaudited 30 June 2019 | Audited 31 December 2018 | |
| US$'m | US$'m |
Statement of Financial Position |
|
|
Cash and short-term deposits | 295 | 243 |
Total current assets | 375 | 257 |
Total non-current assets | 18,786 | 17,999 |
Total assets | 19,162 | 18,256 |
Total current liabilities | 2,127 | 1,709 |
Total non-current liabilities | 12,742 | 12,349 |
Total liabilities | 14,870 | 14,057 |
Net assets | 4,292 | 4,199 |
Financial ratios |
|
|
Net assets per share (US$)2 | 6.18 | 6.05 |
Gearing (times)3 | 3.1 | 3.0 |
Aircraft Portfolio at 30 June 2019 (by number of aircraft)
Aircraft Type | Owned Aircraft | Managed Aircraft | Aircraft on Order1 |
Total |
Airbus A320CEO family | 126 | 7 | 0 | 133 |
Airbus A320NEO family | 36 | 0 | 52 | 88 |
Airbus A330CEO family | 12 | 3 | 0 | 15 |
Airbus A330NEO family | 0 | 0 | 12 | 12 |
Airbus A350 family | 6 | 0 | 2 | 8 |
Boeing 737NG family | 95 | 8 | 0 | 103 |
Boeing 737 MAX family | 6 | 0 | 87 | 93 |
Boeing 777-300ER | 19 | 3 | 3 | 25 |
Boeing 777-300 | 0 | 1 | 0 | 1 |
Boeing 787 family | 9 | 0 | 6 | 15 |
Freighters | 5 | 1 | 0 | 6 |
Total |
314 |
23 |
162 |
499 |
The first half 2019 financial results presentation slides and unaudited interim condensed consolidated financial statements are available on the Company website at https://www.bocaviation.com/en/Investors/Financial-Results, along with a recording of the earnings conference call that will be made available by 19 August 2019.
1 Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery. As described in our Announcement dated 30 July 2019, we now expect delivery delays could result in up to 30 aircraft being delayed out of 2019, including three for which an airline customer has the right to acquire the aircraft on delivery. These presently comprise up to seven Airbus A320NEO aircraft and up to 23 Boeing 737 MAX aircraft.
2 Net assets per share is calculated by dividing net assets by total number of shares outstanding at 30 June 2019, and 31 December 2018, in the respective columns. Number of shares outstanding at 30 June 2019 and 31 December 2018 was 694,010,334.
3 Gearing is calculated by dividing gross debt by total equity at 30 June 2019, and 31 December 2018, in the respective columns.
Contributed by BOC Aviation