Dubai, U.A.E., 3 November 2021 – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the nine months ended September 30, 2021. The consolidated financial statements can be found here.
Selected Financial and Operating Highlights:
- Total Revenue: US$925.3 million (nine months ended September 30, 2020: US$984.1 million)
- Adjusted Profit Before Tax: US$134.4 million (nine months ended September 30, 2020: US$178.8 million)
- Operating Cash Flow: US$799.7 million (nine months ended September 30, 2020: US$602.7 million)
- Unsecured Debt as a percentage of Total Debt: 68.6% (Year-end 2020: 62.6%)
- Available Liquidity: US$3,421.9 million (Year-end 2020: US$2,693.0 million)
- Fleet Utilization: 98.8% (Year-end 2020: 98.2%)
- Collection rate[1]: 89% (nine months ended September 30, 2020: 82%)
- Redeemed and announced for redemption approximately US$1.7 billion of high coupon debt. Issued US$2.8 billion of new, unsecured long-term debt.
- Added three new aircraft investors; managed fleet increased to 72 aircraft
- Successful orderbook placement with 12 Boeing 737 MAX 8 with customer in Americas
- Enhanced Board governance with the addition of independent and executive Directors
- Inaugural ESG Risk Rating of 14.1 from Sustainalytics, lowest in aircraft leasing industry
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our financial results for the first nine months of 2021 demonstrate our continued focus in the leasing division on investing in new technology, fuel-efficient narrow body aircraft, sales of portfolio aircraft in the secondary market, and extending further relief to our airline customers. Since the onset of the pandemic, we have deployed approximately US$2.6 billion of capital commitments for our own balance sheet and on behalf of our aircraft investor partners.
“Our Engineering division’s revenues increased 45% as operating capacity of our facility returned to normal, allowing for more aircraft inductions.
“Many airlines are beginning to return to normal operations which has helped to improve our collection rate to 89% for the period and increase our operating cashflow by 33% to US$800 million in the first nine months of 2021. Approximately seven billion vaccine doses have been administered globally, but the deployment is uneven across jurisdictions, impacting recovery of long-haul air traffic. We continue to monitor air traffic recovery trends and maintain a strong and healthy balance sheet and exceptional liquidity to assist our clients and grow our franchise.”
Webcast and Conference Call
In connection with DAE’s third quarter 2021 earnings release, management will host a conference call on November 3, 2021 at 09:00 EDT / 13:00 GMT / 17:00 GST / 21:00 SGT.
The call can be accessed live by clicking here from your laptop, tablet, or mobile device, or by dialing one of the global dial-in numbers and using the following access code: 9181132.
Full details of the call can also be accessed live via the link on DAE’s website: www.dubaiaerospace.com/investors.
Forward Looking Statements
Certain information contained in this Press Release may constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “continue”, “expect”, “anticipate”, “predict”, “project”, “plan”, “estimate”, “budget”, “assume”, “potential”, “future”, “intend” or “believe” or the negatives thereof or other comparable terminology. These statements reflect DAE’s current expectations and assumptions and involve known and unknown risks regarding future events, results or outcomes and are not guarantees of future results or financial condition. Actual results, performance, achievements or conditions may differ materially from those in the forward‐looking statements and assumptions as a result of a number of factors, many of which are beyond DAE’s control.
Non-IFRS Financial Information
This Press Release may include certain non-IFRS financial information, such as Adjusted EBITDA, not prepared in accordance with IFRS. Because of the limitations of Adjusted EBITDA, it should not be considered as a substitute for financial information prepared or determined in accordance with IFRS, as applicable. Where applicable, DAE compensates for these limitations by relying primarily on its IFRS results and using Adjusted EBITDA only for supplemental purposes.
[1] Collection Rate is defined as the sum of all cash collected from lease rentals as a percentage of the total contracted receivables due for the period after incorporating the effect of any lease amendment or deferral agreements executed as of September 30, 2021.
Results of Operations
The following discussion of our results of operations is based on the condensed consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial position which have been extracted from our financial statements for the nine months ended September 30, 2021.
| Results of operations (in millions of USD) | Nine months ended Sep 30
|
|
| 2021 | 2020 | |
| Consolidated statement of profit or loss and comprehensive income | ||
| Total revenue | 925.3 | 984.1 |
| Gain on disposal of aircraft | 59.7 | 9.9 |
| Expenses | ||
| Depreciation and amortization | (427.6) | (418.7) |
| General and administrative expenses | (58.5) | (57.2) |
| Cost of providing engineering maintenance services | (44.0) | (31.1) |
| Loss allowance | (54.8) | (40.4) |
| Aircraft maintenance | (14.3) | (13.9) |
| Operating profit |
385.8 |
432.7 |
| Finance income | 4.4 | 13.7 |
| Finance expense | (255.8) | (267.6) |
| Debt redemption costs | (38.3) | – |
| Net finance costs |
(289.7) |
(253.9) |
| Profit before income tax | 96.1 | 178.8 |
| Income tax expense | (5.6) | (11.5) |
| Profit for the period |
90.5 |
167.3 |
| Add back debt redemption costs | 38.3
|
–
|
| Adjusted profit for the period | 128.8
|
167.3
|
| As at
|
||
| Consolidated statement of financial position (Extract) | Sep 30, 2021 | Dec 31, 2020 |
| Total cash and cash resources | 947.1 | 566.5 |
| Aircraft held for lease | 11,297.1 | 11,321.0 |
| Aircraft held for sale | 42.8
|
–
|
| Total assets | 13,176.5
|
12,742.5
|
| Total loans and borrowings | 8,347.7 | 7,907.2 |
| Total equity | 3,013.0
|
2,891.1
|
| Total liabilities and equity | 13,176.5
|
12,742.5
|
| Nine months ended Sep 30
|
||
| Adjusted EBITDA calculation P(1) | 2021 | 2020 |
| Profit for the period | 90.5 | 167.3 |
| Add back | ||
| Net finance costs | 289.7 | 253.9 |
| Income tax expense | 5.6 | 11.5 |
| Loss allowance | 54.8 | 40.4 |
| Depreciation and amortization | 427.6
|
418.7
|
| Adjusted EBITDA | 868.2
|
891.8
|
| As at
|
||
| Financial metrics | Sep 30, 2021 | Dec 31, 2020 |
| Pre-tax margin (per cent) (2) | 10.4 | 19.2 |
| Pre-tax return on equity (per cent) P(3) | 6.0 | 8.4 |
| Net debt to equity (times) P(4) | 2.48x | 2.57x |
| Total available liquidity (USD billions) (5) | 3.4 | 2.7 |
| Unsecured debt/total debt (per cent) (6) | 68.6 | 62.6 |
| Liquidity coverage ratio (per cent) (7) (8) | 263.5 | 235.2 |
All financial information above has been rounded for presentation purposes. Any percentages are based on unrounded figures.
- We define Adjusted EBITDA as profit, excluding net finance costs, loss allowance for financial assets, income tax expense and depreciation and amortization.
- Calculated as profit before income tax divided by total revenue.
- Calculated as profit before income tax (annualized in the case of interim periods) divided by average total equity. Pre-tax return on equity for September 30, 2021 excludes one time bond redemption costs incurred during 2021.
- Calculated as net debt (being total loans and borrowings, net of debt issuance costs less cash and cash equivalents) divided by total equity.
- Calculated as the sum of available revolving credit and cash and cash equivalents.
- Calculated as unsecured loans and borrowings divided by total bank loans.
- Calculated as total available liquidity divided by recourse debt payments.
* ENDS *
About DAE
Dubai Aerospace Enterprise (DAE) Ltd. is a global aviation services company headquartered in Dubai. DAE serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York and Seattle.
DAE’s award-winning Aircraft Leasing division has an owned, managed, committed and mandated to manage fleet of approximately 425 Airbus, ATR and Boeing aircraft with a fleet value exceeding US$16 billion. DAE’s Engineering division serves customers in Europe, Middle East, Africa and South Asia from its state-of-the-art facility accommodating up to 15 wide and narrow body aircraft. It is authorized to work on 13 aircraft types and has regulatory approval from over 25 regulators globally. More information can be found on the company’s web site at www.dubaiaerospace.com.
For further information, please contact:
| Media | Fixed Income Investors |
| Arne Bevaart | Deion McCarthy |
| +971 4 428 9591 | +971 4 428 9576 |
| press.office@dubaiaerospace.com | investorrelations@dubaiaerospace.com |