Dubai, U.A.E., 04 November 2020 – Dubai Aerospace Enterprise (DAE) Ltd. reported its financial results for the nine months ended September 30, 2020. The consolidated financial statements can be found here.
- Total Revenue: US$984.1 million (nine months ended September 30, 2019: US$1,085.1 million)
- Net Income: US$167.3 million (nine months ended September 30, 2019: US$260.5 million)
- Pre-Tax Profit Margin: 18% (nine months ended September 30, 2019: 26%)
- Pre-Tax Return on Equity: 8% (nine months ended September 30, 2019: 11%)
- Net Debt-to-Equity: 2.47x (Year-end 2019: 2.56x)
- Unsecured Debt as a percentage of Total Debt: 62% (Year-end 2019: 57%)
- Available Liquidity: US$2,130 million (Year-end 2019: US$2,404 million)
- Unencumbered Assets: US$6.6 billion (Year-end 2019: US$6.8 billion)
- Fleet Utilization: 98.3% (Year-end 2019: 100%)
Commenting on these results, DAE’s Chief Executive Officer, Firoz Tarapore said: “The third quarter of 2020 was characterized by excellent new business origination, strong capitalization, robust liquidity and continuing efforts to assist our clients in this difficult operating environment.
"During Q3 2020, we signed agreements to acquire 31 aircraft with a total value of approximately US$1.1 billion, of which approximately US$0.2 billion was booked in Q3 2020. The remainder will be booked in Q4 2020 and 2021.
“Throughout the quarter, we maintained robust liquidity and ended this period with available liquidity of US$2.1 billion after repaying a US$430 million bond in August. Furthermore, we ended the quarter with strong capital levels – our Net Debt-to-Equity ratio was below 2.5x. Our strong financial condition and our disciplined risk management practices facilitated confirmation of our investment grade ratings from Moody’s (Baa3) and Fitch (BBB-).
“We continue to work with our customers on a case-by-case basis to provide a range of solutions that create value for both our clients and for DAE. As of September 30, 2020, we have provided the following two broad types of assistance to our clients:
- Rent Deferral: we executed deferral relief packages incorporating lease extensions and other lease value enhancements with 21 customers. The total value of these deferral relief packages is US$155 million or 13% of Trailing Twelve Months lease revenue. Of the total deferrals, US$110 million has been incurred and US$45 million relates to future periods. US$20 million has been repaid and 4 customers have repaid in full.
- Lease Amendments: we entered into various lease amendments principally involving near-term relief in exchange for lease extensions and other lease value enhancements with a further 12 customers. The total value of these amendments is US$84 million or 7% of Trailing Twelve Months lease revenue.
“During Q3 2020, our cash collection rate increased to 77% from 69% in Q2 2020. For the nine months ended September 30, 2020 our cash collection rate is 80%”, Mr. Tarapore concluded.