Dubai, U.A.E., 4 August 2022 – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the six months ended June 30, 2022. The consolidated financial statements can be found here.
Selected Financial Highlights:
Six Months Ended
US$ millions Jun 30, 2022 Jun 30, 2021
Total Revenue 582.8 613.4
Profit for the period before exceptional items (1) 140.1 49.0
Operating Cash Flow 678.5 498.5
Exceptional Items, net of tax (537.9) -
Adjusted Pre-Tax Profit Margin (1)(2) 23.0% 11.0%
Adjusted Pre-Tax Return on Equity (1)(2) 8.8% 4.6%
US$ millions Jun 30, 2022 Dec 31, 2021
Total Assets 11,503.1 12,609.6
Net Loans and Borrowings 7,214.8 7,813.7
Available Liquidity 2,725.3 2,910.3
Net Debt to Equity 2.56x 2.54x
Unsecured Debt Percentage 71.1% 69.8%
• 2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia. In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of US$576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the six months ended June 30, 2022.
• 2021 results are adjusted to exclude one-time bond redemption costs of US$16.1 million incurred during the six months ended June 30, 2021.
• Profit before exceptional items increased by 186% to US$140.1 million
• Cash flows from operating activities increased by 36% to US$678.5 million
• Liquidity Ratio exceptionally strong at 667%; available liquidity of US$2.7 billion
• Bond repurchases of US$77 million
Selected Business and Operating Highlights:
• Number of aircraft acquired: 34 (owned: 8; managed: 26)
• Number of aircraft sold: 27 (owned: 7; managed: 20)
• Lease agreements, extensions, and amendments signed: 85 (owned: 69; managed: 16)
• Owned portfolio contracted: 98.7%
• Owned portfolio cash collections rate (3): 103%
• New capital commitments for aircraft purchases: US$750 million
• Signed a new aircraft management mandate to acquire and manage up to US$1.75 billion of aircraft assets
• Published DAE’s second annual ESG Report which includes a Limited Assurance audit
• Cash 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 June 30, 2022.
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our financial results are reflective of the strength of DAE’s franchise despite emerging macroeconomic headwinds. Air travel demand continues to be strong and all leading indicators continue to point to a strong summer season for our airline customers. Supply side constraints, particularly among airport ecosystems, as well as inflationary concerns have not dented demand; however, is likely going to be a key constraint as airlines globally work towards returning to 2019 levels.
DAE Capital continues to be active in the secondary trading market, where we have committed approximately US$750 million in the first half of the year to acquire assets for both our owned portfolio and our managed portfolios. We have maintained a robust pace of asset sales in the current market environment. We have further cemented our position as a leading global aircraft asset manager by securing a mandate to acquire up to US$1.75 billion of additional aircraft assets.
DAE Engineering recorded its highest half year revenues in history. We remain on course to capture summer southern hemisphere widebody maintenance with new additions from South America joining our already exceptional customer base.”
Webcast and Conference Call
In connection with DAE’s second quarter 2022 earnings release, management will host a conference call on Thursday, August 04, 2022 at 09:00 EDT / 14:00 BST / 17:00 GST / 21:00 SGT.