Celebrating its 25th anniversary in 2018, BOC Aviation reported profit before tax of US$685 million in 2018, which represented a 24% increase over the previous year, and net profit after tax of US$620 million. The lessor delivered return on equity of 15.5%, above its 12-year average return on equity of 15%.
Total revenues and other income rose 23% year-on-year, to US$1,726 million, with total assets up by 14% year-on-year, to US$18 billion.
In 2018, BOC Aviation raised US$2.7 billion in new financing and ended the year with a debt to equity ratio of 3.0 times. The lessor maintained strong liquidity with US$243 million in total cash and short-term deposits, and US$3.6 billion in undrawn committed credit facilities at 31 December 2018
As at 31 December 2018, BOC Aviation’s total fleet included 511 aircraft owned, managed and on order, with an average aircraft age of 3.0 years and an average remaining lease term of 8.3 years for the 303 owned aircraft fleet, weighted by net book value. In 2018, BOC Aviation leased aircraft to 93 airlines in 37 countries and regions, and took delivery of 55 aircraft (including five acquired by airline customers on delivery). The lessor signed 92 lease commitments, sold 34 owned and seven managed aircraft in 2018, and recorded aircraft utilisation of 99.9% for the year ended 31 December 2018. BOC Aviation’s order book stands at 183 aircraft.
The Board has recommended a final dividend of US$0.1845 per share, bringing the total dividend for 2018 to US$0.3129 per share. The full-year dividend represents a 35% payout of 2018 net profit after tax.
CEO Robert Martin commented: “Looking forwards, building on the lessons of the last quarter of a century we aim to achieve greater heights in the years ahead.”