Aircraft leasing company SMBC Aviation has reported its results for the financial year ended March 31, 2020.
The company reported profit before tax of US$364.5 million, an increase of almost 5.8% y/y. Total aircraft operating lease assets grew by 3.7% to US$10.6 billion – a lower-than-anticipated level of asset growth due to the grounding of the B737 MAX aircraft and Airbus A320neo delays.
Core lease rentals increased by US$55.8 million to US$1.1 billion – a 5.5% increase. The company reported EBITDA of US$1.1 billion with EBITDA to interest coverage remaining strong at 3.6 times.
SMBC will defer deliveries of 68 Boeing 737 Max aircraft until 2025-2027.
At the end of the fiscal year the company had available liquidity of US$6.3 billion due to diversified funding sources and unrestricted cash balance.
