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.