Avolon, the international aircraft leasing company, announces results for the third quarter of 2020 (‘Q3’).
2020 THIRD QUARTER | FINANCIAL HIGHLIGHTS
US$ MILLION | Q3 2020 | Q3 2019 |
Lease Revenue | 504 | 651 |
Impairment & Accelerated Amortisation Charge | (42) | (9) |
(Loss)/profit for the quarter | (41) | 161 |
Total Available Liquidity | 5,738 | 6,308 |
Total Assets | 31,057 | 28,385 |
Secured Debt / Total Assets | 26% | 28% |
Net Debt to Equity | 2.3x | 2.1x |
- Strong liquidity position at quarter end, with total liquidity in excess of US$5.7 billion;
- Third quarter lease revenue of US$504 million;
- Net loss of US$41m for third quarter;
- Closed a private offering of US$650m senior unsecured notes with a 2026 maturity;
- Prudent capital structure – with net debt to equity of 2.3x at end of Q3;
- Lease revenue collection rate trended upwards during Q3;
- Aggregate increase in trade receivables and deferred revenue asset implies year to date lease revenue collection rate of 83%; and
- 24 customers started repayments as scheduled in Q3; four additional customers remain in arrears or are subject to an extension of their deferral period.
2020 THIRD QUARTER | OPERATIONAL HIGHLIGHTS
- Delivered four new aircraft and transitioned one aircraft to a follow-on lessee;
- Sold one aircraft during the quarter, representing the final aircraft to be sold to the Sapphire 2020-1 vehicle;
- Executed a total of 55 lease transactions in the quarter comprising new aircraft placements, follow-on leases, lease extensions and 15 sale and leaseback transactions;
- Owned and managed fleet of 551 aircraft at the end of Q3, with total orders and commitments for 286 new technology aircraft;
- Average aircraft age of 5.3 years; and
- Total of 145 airline customers in 61 countries.
Dómhnal Slattery, Avolon CEO, commented: “The third quarter represented another quarter of strong liquidity, active portfolio management and, encouragingly, a continued improvement in our revenue collection rate. Our capital position continues to be one of the strongest in the sector. Our capital strength and depth of industry relationships means we are well placed to take advantage of growth opportunities – where they align with our prudent approach to risk management and strict underwriting discipline.
We will continue to be nimble and opportunistic in coming quarters but will balance our appetite for opportunistic growth with maintaining a strong financial position, which is a hallmark of the Avolon franchise.”