BOC Aviation has reported a net loss after tax of US$313 million for the first half of 2022. The primary reason for the loss is the write-down of the net book value of 17 aircraft that remain in Russia of US$804 million. This was partially offset by cash collateral held in respect of those aircraft of US$223 million and tax credits of US$63 million. Excluding this impact, BOC Aviation’s core net profit after tax (NPAT) was US$206 million.
During the six months ended June 2022, BOC Aviation generated positive operating cash flow net of interest expense of US$717 million and ended the half year with US$6 billion in available liquidity. The Board of Directors approved a distribution of US$0.0889 per share by way of interim dividend, which represents 30% of BOC Aviation’s core NPAT in the first half of 2022 and reflects the Board’s confidence in the company’s business outlook.
“In the first half, BOC Aviation generated core NPAT of US$206 million, which demonstrates the resilience of our underlying business,” Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation, commented. “Our balance sheet strength and high levels of liquidity position us well to continue producing long-term sustainable earnings for our shareholders.”
BOC Aviation’s total revenues and other income increased 8% to US$1,196 million compared with the first half of 2021, while operating cash flow net of interest increased 29% to US$717 million compared with the first half of 2021. Total assets decreased 4% to US$22.8 billion as at 30 June 2022 compared with 31 December 2021, primarily on account of the write-down of the net book value of aircraft remaining in Russia .
BOC Aviation maintained strong liquidity with US$454 million in cash and short-term deposits in addition to US$5.5 billion in undrawn committed credit facilities as at 30 June 2022.
As of 30 June 2022, BOC Aviation has a portfolio of 608 aircraft owned, managed and on order – the owned fleet of 390 aircraft has an average age of 4.1 years and an average remaining lease term of 8.4 years, each weighted by net book value. Its managed fleet is comprised of 37 aircraft
BOC Aviation’s orderbook of 1,812 aircraft is scheduled for delivery through to 31 December 2029. Total new aircraft deliveries of 20 aircraft, including five acquired by airline customers on delivery, in the first half of 2022. During the period, BOC Aviation transitioned six used aircraft to airline customers, sold five aircraft from the owned fleet, and signed 46 lease commitments in the first half of 2022.
The Singapore-based lessor has a customer base of 79 airlines in 36 countries and regions in the owned and managed fleet. It’s owned aircraft utilisation is at 96.1%. BOC Aviation collected cash from airline customers of 96.9% for the first half of 2022 compared with 95.9% in the first half of 2021.