DAE Announces Financial Results for the Nine Months ended September 30, 2023

Revenue increased by 16% to US$989 million

 

Dubai, U.A.E., 1 November 2023 – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the nine months ended September 30, 2023. The consolidated financial statements can be found here. 

 

Selected Financial Highlights:

  Nine Months Ended

US$ millions Sep 30, 2023 Sep 30, 2022

Total Revenue 989.2 853.9

Profit for the period before tax and exceptional items (1) 207.5 200.6

Operating Cash Flow 928.9 956.6

   

Adjusted Pre-Tax Profit Margin (1) 21.0% 23.5%

Adjusted Pre-Tax Return on Equity (1) 9.4% 8.7%

   

  As at

US$ millions Sep 30, 2023 Dec 31, 2022

Total Assets 12,434.4 12,709.1

Net Loans and Borrowings 7,733.4 8,045.9

Available Liquidity 3,842.3 2,659.9

   

Net-Debt-to-Equity 2.46x 2.64x

Unsecured Debt Percentage 73.0% 69.8%

Liquidity Coverage Ratio 268.9% 341.0%

 

1. 2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia. In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of US$576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the nine months ended September 30, 2022.

 

• Revenue increased by 16% to US$989.2 million

• Profit before tax and exceptional items of US$207.5 million

• Available liquidity of US$3.8 billion; Liquidity Coverage Ratio of 269%

• Net Debt-to-Equity of 2.46x; Unsecured Debt Percentage of 73%

• Open market bond repurchases of US$322.7 million

 

Selected Business & Operational Highlights:

• Acquired the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft

• Number of aircraft acquired: 16 (owned: 9; managed: 7)

• Number of aircraft sold: 21 (owned: 13; managed: 8)

• Lease agreements, extensions and amendments signed: 117 (owned: 88; managed: 29)

• Customers: 119; Countries: 60

• Owned Fleet Average Age (years): 7.4

• Owned Fleet Average Lease Term Remaining (years): 5.9

• DAE Engineering Available Man Hours: 1.0 million (2022: 0.9 million); Number of Aircraft Inductions: 237 (2022: 208)

 

Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “We are continuing to see strong revenue recovery as our airline customers benefit from strong demand, with revenue growth of 16% to US$989 million in the first nine months of 2023, compared to the same period in 2022.

 

During the third quarter of 2023, DAE both announced and completed its acquisition of the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft, which provides certainty to our near-term growth prospects and further deepens our commitment to funding next-generation, fuel-efficient aircraft. Powered by CFM International LEAP-1B engines and advanced technology winglets, the 737 MAX reduces fuel use and emissions by 20% compared to airplanes it replaces. 

 

Also during the third quarter, Boeing selected Joramco to establish a new Boeing 737-800BCF freighter conversion line in Amman, Jordan. DAE Engineering’s footprint continues to grow to an expected 22 maintenance lines by the end of 2024.

 

We continue to actively manage the liability side of our balance sheet and announced the signing of our largest ever bank financing, a US$1.6 billion multi-tranche financing, structured as a combination of revolving credit facilities and term financing facilities. We ended the quarter with available liquidity standing at US$3.8 billion, and an exceptionally strong liquidity coverage ratio at 269%.

 

Overall, this quarter can be characterized by the significant amount of franchise enhancing activities, both at DAE Capital and DAE Engineering, as well as the continued strength of our combined businesses as we trend back to, or above, pre-pandemic levels on all fronts.”

 

Webcast and Conference Call

In connection with the announcement of DAE’s results for the nine months ended September 30, 2023, management will host a conference call on Wednesday, 01 November 2023 at 09:00 EDT / 13:00 GMT / 17:00 GST / 21:00 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 quoting ‘Dubai Aerospace Enterprise’ when prompted.

 

Full details of the call can also be accessed live via the link on DAE’s website: 

www.dubaiaerospace.com/investors.

 

Forward Looking Statements

Certain information contained in this Press Release may constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “continue”, “expect”, “anticipate”, “predict”, “project”, “plan”, “estimate”, “budget”, “assume”, “potential”, “future”, “intend” or “believe” or the negatives thereof or other comparable terminology. These statements reflect DAE’s current expectations and assumptions and involve known and unknown risks regarding future events, results or outcomes and are not guarantees of future results or financial condition. Actual results, performance, achievements, or conditions may differ materially from those in the forward‐looking statements and assumptions as a result of a number of factors, many of which are beyond DAE’s control.

 

Non-IFRS Financial Information 

This Press Release may include certain non-IFRS financial information, such as Adjusted EBITDA, not prepared in accordance with IFRS. Because of the limitations of Adjusted EBITDA, it should not be considered as a substitute for financial information prepared or determined in accordance with IFRS, as applicable. Where applicable, DAE compensates for these limitations by relying primarily on its IFRS results and using Adjusted EBITDA only for supplemental purposes.