Nordic Aviation Capital delivers another record year and announces its 23rd consecutive year of increased profit

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Nordic Aviation Capital delivers another record year and announces its 23rd consecutive year of increased profit.

Nordic Aviation Capital DAC (NAC), the world’s leading regional aircraft lessor, today announced its financial results for the year ended 30th June 2019. 2018/19 was another record year as it delivered its 23rd year of consecutive profitability. NAC continued its growth trajectory and expanded business across the globe.

Key highlights;

  • Total revenue increased by 21% to US $890 million, lease revenue increased by 17% to US $748 million
  • With a Business Performance result of US $162 million, NAC delivered a 15% return on equity, one of the highest in the industry
  • Generated cash flow from operations of US $540 million and made investments of US $1 billion
  • Increased its fleet by 43 aircraft to 480 and total assets by 6% to US $8.2 billion
  • Announced two new orders at the Paris Air Show for over 100 ATR and Airbus aircraft
  • Welcomed GIC as a new shareholder
  • Injection of US $150 million in additional equity from shareholders to support growth and strengthen its balance sheet
  • Issued the largest private placement of US $786 million in the US by any aircraft leasing company

Successfully raised a total of US $3.1 billion, of which US $1.4 billion was unsecured and increased its unsecured debt to 46% of total debt

Commenting on the company’s performance, Søren M. Overgaard, CEO of NAC said;

“This year’s financial results demonstrate another record year for NAC. We successfully delivered on our strategic initiatives, which is a testament to and a reflection of the hardworking, dedicated, and passionate team at NAC without whom the successful year we delivered would not have been possible.

We would also like to thank our customers around the world for choosing us as their partners and for their confidence in our company. We now lease aircraft to 75 customers in 50 countries. We will continue to refine our customer-oriented approach to ensure that we remain relevant to our customers and take advantage of opportunities as they arise to build our leasing platform across the globe.

In 2019/20, we expect to continue our growth journey and deliver the 24th consecutive year of increased profit – as we remain committed to maintaining our position at the heart of regional aviation.”

In addition, NAC’s CEO Søren M. Overgaard has today informed of his intentions to join NAC’s founder and Chairman Martin Moller’s family office as CEO in the second half of 2020. Søren M. Overgaard will continue as CEO of NAC until he transitions to this role. NAC is the single largest investment in the family office and as such Søren will continue to be involved with NAC after the transition.