BOC Aviation Reports 1H 2019 Performance

Editor -

BOC Aviation Limited (HKEX Code: 2588, “BOC Aviation”) is pleased to announce its unaudited results for the six months ended 30 June 2019.

Robert Martin, Managing Director and Chief Executive Officer, said, “We have just achieved a major milestone in June 2019 as our cumulative net profit after tax (“NPAT”) exceededUS$4 billion since inception. BOC Aviation reported NPAT of US$321 million in the first half of 2019, an increase of 8% compared with the same period last year. Revenue rose 13% to US$930 million from US$825 million, and our fleet net book value grew 6% to US$15.9 billion from 31 December 2018, as we continued to take delivery of modern, fuel efficient aircraft. The 8% rise in the interim dividend declared underpins our continued focus on delivering good long-term returns for our shareholders.”

Financial Highlights

Our financial highlights for the six months ended 30 June 2019 are:

  •   Total revenues and other income rose 13% to US$930 million
  •   Net profit after tax was US$321 million, an increase of 8% over the first half of 2018
  •   Earnings per share of US$0.46
  •   Interim dividend of US$0.1388 per share

  Total assets increased 5% to US$19.2 billion as at 30 June 2019 from 31 December 2018

  Maintained strong liquidity with US$295 million in total cash and short-term deposits,

and US$3.5 billion in undrawn committed credit facilities as at 30 June 2019

  •   Raised more than US$1.5 billion in new financing

  Portfolio utilisation and cash collection from airline customers of 99.6% and 97.2%, respectively

Portfolio and Operational Highlights

Our operational transactions as at 30 June 2019 included:

  •   A portfolio of 499 owned, managed and committed aircraft1

  Owned fleet of 314 aircraft, with an average age of 3.1 years and an average

remaining lease term of 8.2 years, each weighted by net book value

  •   Orderbook of 162 aircraft1

  Took delivery of 25 aircraft, including five acquired by airline customers on delivery,

in the first half of 2019

  18 aircraft scheduled for delivery in the first half of 2019 were delayed, comprising

12 Airbus aircraft delayed primarily due to industrial constraints and six Boeing

aircraft delayed primarily due to the 737 MAX grounding

  •   Signed 39 lease commitments in the first half of 2019

  Customer base of 92 airlines in 40 countries and regions in the owned and managed fleet

  •   Sold 11 aircraft, including two managed aircraft
  •   Managed fleet comprised 23 aircraft
  •   Repossessed five owned and three managed aircraft from airlines that had ceased
  1. Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery. As described in our Announcement dated 30 July 2019, we now expect delivery delays could result in up to 30 aircraft being delayed out of 2019, including three for which an airline customer has the right to acquire the aircraft on delivery. These presently comprise up to seven Airbus A320NEO aircraft and up to 23 Boeing 737 MAX aircraft.