Dubai Aerospace Enterprise reports strong demand and financial resilience in H1 2023

Dubai Aerospace Enterprise reports strong demand and financial resilience in H1 2023

Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the six months ended June 30, 2023.

Selected Financial Highlights:

  • Revenue increased by 15 percent to US$670.1 million
  • Profit before tax and exceptional items increased by 13 percent to US$150.4 million
  • Available liquidity of US$2.3 billion; Liquidity Coverage Ratio of 281 percent
  • Net Debt-to-Equity of 2.50x; Unsecured Debt Percentage of 73.3 percent
  • Open market bond repurchases of US$307 million

Selected Business & Operational Highlights:

  • Number of aircraft acquired: 7 (owned: 2; managed: 5)
  • Number of aircraft sold: 16 (owned: 10; managed: 6)
  • Lease agreements, extensions and amendments signed: 64 (owned: 48; managed: 16)
  • Customers: 117; Countries: 60
  • Owned Fleet Average Age (years): 7.1
  • Owned Fleet Average Lease Term Remaining (years): 6.0
  • DAE Capital Percentage of Next Generation, Fuel Efficient Aircraft: 50.3%
  • DAE Engineering Available Man Hours: 0.7 million; Number of Aircraft Inductions: 177
  • Fitch Ratings Outlook revised to Positive from Stable

Firoz Tarapore, the Chief Executive Officer of DAE, expressed satisfaction with the first-half 2023 results, highlighting the strong demand for aircraft from their airline customers. He mentioned that COVID-era deferral programs were being repaid ahead of schedule, and secondary market aircraft valuations remained robust, leading to a 15 percent revenue growth compared to the same period in 2022. The company's active liability management program, which included repurchasing a significant amount of bonds, has further strengthened their financial position. Tarapore also emphasized the resilience of their business model, with profitability metrics approaching pre-pandemic levels, and he pointed out that Fitch Ratings revised its Outlook on DAE to Positive from Stable during the quarter. Overall, the statements indicate a positive outlook for DAE, with strong financial performance and growth prospects in the aviation market.

DAE Engineering continues to increase its global footprint and grow its widebody maintenance offering with expanding relationships in Asia Pacific and the Americas.

During the quarter, Joramco announced that Joramco Academy, one of the few training institutions in the Middle East with EASA approval, is extending its training offering with expansion in Ghana through a partnership with locally based Aerojet Aviation.

News Source: Emirates News Agency

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