Dubai Aerospace Enterprise (DAE) and its subsidiaries have reported financial results for the six months ended June 30, 2023.
Profit for the six months was US$141.1 million compared to a profit before exceptional items of US$140.1 million for the six months ended June 30, 2022. Operating profit increased by US$65.0 million to US$319.8 million compared to operating profit before exceptional item of US$254.8 million for the
six months ended June 30, 2022 which is mainly attributed to increased lease revenue and reversal of loss allowance.
Operating profit for the six months was US$319.8 million compared to an operating loss after exceptional item of US$321.7 million for the six months ended June 30, 2022. The exceptional item in 2022 pertains to an asset write-off of US$576.5 million relating to certain aircraft in Russia not in the Group’s control.
Cash flows from operating activities for the six months decreased by 5.2% to US$643.4 million compared to US$678.5 million the previous year. This is primarily due to higher maintenance reserve receipts in the prior period driven by the drawdown of letters of credit associated with aircraft previously leased to Russian customers.
Net cash generated from operating activities increased by US$42.2 million or 7.0% as compared to the prior-period period. Total assets were US$12,224.4 million compared to US$12,709.1 million on December 31, 2022. This decrease was mainly due to aircraft sold and depreciation charge during the period.
Available liquidity was US$2,330.7 million compared to US$2,659.9 million in 2022. The Liquidity coverage ratio was 281.0% compared to 341.0% in 2022. Net Debt-to-Equity ratio was 2.50:1 compared to 2.64:1 times the previous year.
Total number of aircraft in the fleet at the end of June was 429 (December 31, 2022: 440) which consisted of 322 owned (December 31, 2022: 330), 103 managed (December 31, 2022: 104) and four committed aircraft (December 31, 2022: six).
During the six months the company purchased two owned aircraft (June 30, 2022: eight) and five managed aircraft (June 30, 2022: 26) and sold or consigned ten owned aircraft (June 30, 2022: seven) and six managed aircraft (June 30, 2022: 20). The weighted average age of the owned fleet was 7.1 years compared to 6.5 years at the end of 2022. The weighted average remaining lease term of DAE’s owned fleet was 6.0 years compared with 6.3 years on December 31, 2022.
The ratio of unsecured debt to total debt was 73.3% compared to 69.8% the previous year (£1.00 = US$1.27 at time of publication).
