Dubai, U.A.E., 10 February 2021 –Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the full year 2020. The consolidated financial statements can be found here.
Financial Highlights include:
- Total Revenue: US$1,300.3 million (2019: US$1,439.5 million)
- Profit Before Tax: US$250.2 million (2019: US$413.6 million)
- Pre-Tax Profit Margin: 19.2% (2019: 29.1%)
- Pre-Tax Return on Equity: 8.4% (2019: 12.6%)
- Net Debt-to-Equity: 2.57x (Year-end 2019: 2.64x)
- Unsecured Debt as a percentage of Total Debt: 62.6% (Year-end 2019: 61.6%)
- Available Liquidity: US$2,693.0 million (Year-end 2019: US$2,203.5 million)
- Share Repurchases: US$350.1 million (2019: US$807.0 million)
- Bond Repurchases: US$192.1 million (2019: US$86.6 million)
Operating Highlights include:
- Number of new underwriting aircraft purchase commitments: 55 (owned: 38; managed: 17)
- Number of aircraft acquired: 38 (owned: 23; managed: 15)
- Number of aircraft sold: 28 (owned: 14; managed: 14)
- Lease agreements and extensions signed: 125 (owned: 109; managed: 16)
- Fleet Utilization: 98.2% (Year-end 2019: 100%)
- Collection rate(1) in Q4 2020: 100% (Q3 2020: 79%)
- Number or aircraft inducted for airframe checks: 184 (2019: 324)
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “2020 was an extraordinary year with the pandemic impacting air traffic demand and airlines’ need for aircraft. In this difficult environment, DAE demonstrated the power of its franchise by (a) using our liquidity position to assist customers, as warranted, with rent deferral agreements, (b) making underwriting commitments for 55 aircraft, and taking delivery of 38 in 2020, and (c) further strengthening the liquidity and capital position of the company.
“DAE has always maintained one of the most diversified aircraft portfolios of any major lessor, with approximately three aircraft on lease to a customer on average. This stellar diversification along with our capital strength and focused underwriting allowed us to deal with airline events in an orderly manner and avoid asset impairments in 2020. All aircraft at year-end 2020 were subject to an agreement or letter of intent to lease or sell. Disciplined underwriting has been the hallmark of our franchise for a very long time, and 2020 was the year in which the benefits of this discipline became more starkly evident.
“Our Engineering division stayed open for most of 2020, balancing the health and safety of our employees with the requirements of our customers. During 2020, we acquired the authorization to perform work on the Boeing 777 and welcomed our first Boeing 777 customer. During the year, we added five new airline customers, and we began 2021 with a hangar full of aircraft.
“As we look to 2021, we remain optimistic about a snapback in air travel demand starting in summer 2021 resulting from ramped up deployment of existing vaccines, development of new vaccines and the favorable impact of measures currently in place in impacted areas to contain the spread. Longer term, we remain very bullish that air traffic demand will revert to its historic trajectory of growing at twice the rate of GDP growth.”
Webcast and Conference Call
In connection with DAE’s full year 2020 earnings release, management will host a conference call on February 10, 2021 at 09:00 EST / 14:00 GMT / 18:00 GST / 22:00 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: 1081756.
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.
Results of Operations
The following discussion of our results of operations is based on the 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 year ended December 31, 2020.
| Results of operations (in millions of USD) | Year ended December 31 | |
|
2020 |
2019
|
|
| Consolidated statement of comprehensive income | ||
| Total revenue | 1,300.3 | 1,439.5 |
| Gain on disposal of aircraft | 34.7 | 84.7 |
| Expenses | ||
| Depreciation and amortization | (559.0) | (572.9) |
| General and administrative expenses | (77.0) | (83.9) |
| Cost of providing engineering maintenance services | (43.0) | (52.4) |
| Loss allowance for financial assets | (53.9) | (12.3) |
| Aircraft maintenance |
(18.1)
|
(11.0)
|
| Operating profit | 584.0 | 791.7 |
| Net finance costs |
(333.8)
|
(378.1)
|
| Profit before income tax | 250.2 | 413.6 |
| Income tax expense |
(21.3)
|
(36.1)
|
| Profit for the year | 228.9 | 377.5 |
|
|
|
|
| As of December 31 | ||
| Consolidated statement of financial position (Extract) | 2020 | 2019 |
| Total cash and cash resources | 566.5 | 366.0 |
| Aircraft held for lease | 11,321.0 | 11,310.0 |
| Assets held for sale | – | 293.4 |
| Total assets | 12,742.5 | 13,537.1 |
| Total loans and borrowings | 7,907.2 | 8,295.5 |
| Total equity | 2,891.1 | 3,053.6 |
| Total liabilities and equity | 12,742.5 | 13,537.1 |
| Year ended December 31 | ||
| Adjusted EBITDA calculation (1) | 2020 | 2019 |
| Profit for the year | 228.9 | 377.5 |
| Add back | ||
| Net finance costs | 333.8 | 378.1 |
| Income tax expense | 21.3 | 36.1 |
| Loss allowance for financial assets | 53.9 | 12.3 |
| Depreciation and amortization |
559.0
|
572.9
|
| Adjusted EBITDA |
1,196.9
|
1,376.9
|
| As of December 31 | ||
| Financial metrics | 2020 | 2019 |
| Pre-tax margin (per cent) (2) | 19.2 | 29.1 |
| Pre-tax return on equity (per cent) (3) | 8.4 | 12.6 |
| Net debt to equity (times) (4) | 2.57x | 2.64x |
| Total available liquidity (USD billions) (5) | 2.7 | 2.4 |
| Unsecured debt/total debt (per cent) (6) | 62.6 | 61.6 |
| Liquidity coverage ratio (per cent) (7) | 235.2 | 224.4 |
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.
- 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 globally recognized aerospace corporation with two divisions: Aircraft Leasing and 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’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 | Sinan Kahya |
| +971 4 428 9591 | +971 4 428 9593 |
| press.office@dubaiaerospace.com | investorrelations@dubaiaerospace.com |