BOC Aviation reported net profit after tax (NPAT) $262 million for the first half of 2023 (H1) driven by higher lease rental income and on the back of rising global passenger traffic. During the six months ended June 2023, BOC Aviation grew its total assets to almost $23 bn and committed to acquire 23 aircraft to close the first half of 2023 with record total committed capital expenditure of $11 bn.
The Board of Directors approved a distribution of $0.1131 per share by way of interim dividend, which represents 30% of the company’s NPAT in the first half of 2023.
“In the first half of 2023, BOC Aviation reported NPAT of US$262 million, a 27% improvement on the core net profit after tax of US$206 million that we generated during the first half of last year,” said Steven Townend, deputy managing director, chief financial officer, BOC Aviation. “We saw strong demand for our aircraft and this was reflected in the growth that we achieved in our balance sheet, income and cashflow. Our robust delivery pipeline positions us well to capitalise on rising airline customer demand for the young, fuel-efficient aircraft in our fleet.”
BOC Aviation reported a total revenue and other income of $1,061 million with a net profit after tax of $262 million, compared with net loss after tax of $313 million, or core net profit after tax of $206 million, in the first half of 2022.
BOC Aviation’s total assets rose 4% to $22.9 bn as at June 30, 2023 compared with December 31, 2022, reflecting ongoing investments in aircraft. The company reported record first half operating cash flow net of interest of $721 million while maintaining strong liquidity with $547 million in cash and short-term deposits in addition to $5.2 bn in undrawn committed credit facilities as at June 30, 2023
On the operational front, BOC Aviation has a portfolio of 652 aircraft owned, managed and on order. Its owned fleet of 404 aircraft has an average age of 4.7 years and an average remaining lease term of 8.0 years, each weighted by net book value.
The lessor has an orderbook of 213 aircraft scheduled for delivery through to December 31, 2029. BOC Aviation delivered 16 new aircraft including one acquired by an airline customer on delivery and transitioned eight used aircraft to airline customers. The company sold three aircraft from the owned fleet, signed 45 lease commitments in the first half of 2023.
BOC Aviation has a customer base of 91 airlines in 42 countries and regions in the owned and managed fleet.