BOC Aviation recorded a net profit of $460 million, or $0.66 per share, for the first half of 2024, beating its record half profit of $323 million set in 2020. The result was driven by a ""continued growth in the core business"" as well as ""aircraft recoveries"" bolstering its result. Its net profit in the half of last year was $262 million. The company declared an interim dividend for 2024 of $0.1988 per share. Total revenues rose 11% in the first half of the year to $1.2bn. Costs and expenses were $665 million, down from $765 million last year. As of June 30, 2024, its total assets were valued at $24.3bn. Total liabilities were $18.2bn as of the period's end. Its net debt to equity was 2.6x. ""We have produced our best-ever first half earnings in 2024 and have built on the record annual earnings generated in 2023,"" said BOC Aviation CEO and managing director Steven Townend. ""With a strong pipeline of aircraft scheduled for delivery over the balance of the year and $5.5 billion of available liquidity we are confident in the outlook for the second half."" During the first half of the year, the company raised $3bn of new debt financing, as well as generated an operating cash flow net of interest to approximately $900 million. The company read in a statement: ""Our balance sheet remained stable at more than $24 billion, with total equity exceeding $6 billion for the first time in our history. We committed to acquire a further 14 aircraft and ended the half with record total committed capital expenditure of $12 billion and an orderbook of 219 aircraft."" In its earnings call, Townend said: ""Matching deliveries to this demand, however, remains a challenge for the whole industry, including ourselves, and we expect this situation to continue through to at least 2026. The capacity shortfall from aircraft delivery delays is also being compounded by the engine servicing requirements specific to a large number of current generation aircraft."" He added: "" However, over time we will see value from this tightness of supply as we are placing the balance of our inventory, including orderbook positions and aircraft with maturing leases, at lease rates that are above the portfolio average."" The company expects global financing requirements for new aircraft deliveries to grow by over 5% in 2024 to around $90bn, with the leased proportion of aircraft financing at approximately 50%. As of June 30, 2024, 680 aircraft included its orderbook, 429 owned aircraft and 32 managed aircraft.
BOC Aviation posts record net profit in first half of the year
