Revenue increased by 16% to US$989 million
Dubai, U.A.E., 1 November 2023 – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the nine months ended September 30, 2023. The consolidated financial statements can be found here.
Selected Financial Highlights:
|Nine Months Ended
Sep 30, 2023
Sep 30, 2022
|Profit for the period before tax and exceptional items (1)||207.5||200.6|
|Operating Cash Flow||928.9||956.6|
|Adjusted Pre-Tax Profit Margin (1)||21.0%||23.5%|
|Adjusted Pre-Tax Return on Equity (1)||9.4||8.7%|
Sep 30, 2023
Dec 31, 2022
|Net Loans and Borrowings||7,733.4||8,045.9|
|Unsecured Debt Percentage||73.0%||69.8%|
|Liquidity Coverage Ratio||268.9%||341.0%|
Selected Business & Operational Highlights:
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “We are continuing to see strong revenue recovery as our airline customers benefit from strong demand, with revenue growth of 16% to US$989 million in the first nine months of 2023, compared to the same period in 2022.
During the third quarter of 2023, DAE both announced and completed its acquisition of the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft, which provides certainty to our near-term growth prospects and further deepens our commitment to funding next-generation, fuel-efficient aircraft. Powered by CFM International LEAP-1B engines and advanced technology winglets, the 737 MAX reduces fuel use and emissions by 20% compared to airplanes it replaces.
Also during the third quarter, Boeing selected Joramco to establish a new Boeing 737-800BCF freighter conversion line in Amman, Jordan. DAE Engineering’s footprint continues to grow to an expected 22 maintenance lines by the end of 2024.
We continue to actively manage the liability side of our balance sheet and announced the signing of our largest ever bank financing, a US$1.6 billion multi-tranche financing, structured as a combination of revolving credit facilities and term financing facilities. We ended the quarter with available liquidity standing at US$3.8 billion, and an exceptionally strong liquidity coverage ratio at 269%.
Overall, this quarter can be characterized by the significant amount of franchise enhancing activities, both at DAE Capital and DAE Engineering, as well as the continued strength of our combined businesses as we trend back to, or above, pre-pandemic levels on all fronts.”
Webcast and Conference Call
In connection with the announcement of DAE’s results for the nine months ended September 30, 2023, management will host a conference call on Wednesday, 01 November 2023 at 09:00 EDT / 13:00 GMT / 17:00 GST / 21:00 SGT.
Full details of the call can also be accessed live via the link on DAE’s website:
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.
* ENDS *
Dubai Aerospace Enterprise (DAE) Ltd is a globally recognized aviation services corporation with two divisions: DAE Capital and DAE Engineering. 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 Capital is an award-winning aircraft lessor with an owned, managed, committed, and mandated to manage fleet of approximately 550 Airbus, ATR and Boeing aircraft with a fleet value exceeding US$20 billion. DAE Engineering provides regional MRO services to customers in Europe, Middle East, Africa, and South Asia from its state-of-the-art facility in Amman, Jordan, accommodating up to 17 wide and narrow body aircraft. It is authorized to work on 15 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|