Press Release
BOC AVIATION REPORTS RECORD EARNINGS IN 2023
14 Mar 2024
BOC Aviation Limited (HKEX Code: 2588, “BOC Aviation”) is pleased to announce its audited results for the year ended 31 December 2023.
BOC Aviation reported net profit after tax (“NPAT”) of US$764 million for 2023, exceeding 2019’s previous record of US$702 million. The improvement reflected underlying growth across the business, combined with insurance settlements in respect of aircraft in Russia.
Our balance sheet grew by 10% during 2023 to more than US$24 billion, reflecting investment in new aircraft. In 2023, we committed to acquire 95 aircraft and ended the year with record total committed capital expenditure of US$12 billion and an orderbook of 224 aircraft.
The Board of Directors has recommended a distribution of US$0.2721 per share by way of final dividend, taking total dividend for the year to US$0.38521. This represents 35% of our 2023 NPAT and will be the highest dividend paid in our company’s history.
“We are delighted to report record earnings as we celebrate our 30th anniversary,” Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation, commented. “We achieved record fleet growth in 2023, which also drove our revenues, cashflows and asset values to record highs. With passenger travel growth expected to remain firm, we are well placed to leverage continued strong demand for the modern aircraft that comprise our fleet and orderbook.”
Financial Highlights
Our financial highlights for the year ended 31 December 2023 are:
• Total revenues and other income rose 7% year-on-year, to US$2.5 billion
• Record net profit after tax of US$764 million compared with US$20 million in 2022
• Earnings per share of US$1.10 and net assets per share of US$8.28
• Operating cash flow net of interest rose 8% to US$1.6 billion
• Total assets of US$24.2 billion at 31 December 2023, up 10% on 2022
• Raised US$4.1 billion of new debt financing comprising US$2.5 billion of loans and US$1.7 billion of bonds
• Maintained strong liquidity of US$5.6 billion, comprising US$392 million in cash and cash equivalents and US$5.2 billion in undrawn committed credit facilities at 31 December 2023
• The Board recommended a final dividend for 2023 of US$0.2721 per share, pending approval at the AGM to be held on 30 May 2024. The final dividend will be payable to shareholders registered at the close of business on the record date, being 7 June 2024, bringing the total dividend for the financial year 2023 to US$0.38521 per share, calculated at 35% of net profit after tax
Portfolio and Operational Highlights
As at 31 December 2023, BOC Aviation had:
• A total fleet of 684 aircraft owned, managed and on order, with an average aircraft age of 4.6 years and an average remaining lease term of 8.1 years for the 426 owned aircraft fleet, weighted by net book value2
• A customer base of 91 airlines in 45 countries and regions in the owned and managed portfolios
• Executed a record 348 transactions in 2023, including:
• Commitments to purchase 95 aircraft
• Delivery of 65 aircraft (excluding two acquired by an airline customer on delivery)
• Sale of 20 aircraft and one engine
• 142 lease commitments
• An orderbook of 224 aircraft
• Recorded aircraft utilisation of 99% for the owned portfolio for the year ended 31 December 2023
The full year 2023 financial results presentation slides and unaudited interim condensed consolidated financial statements are available on the Company website at https://www.bocaviation.com/en/Investors/Financial-Results, along with a recording of the earnings conference call that will be made available by 15 March 2024.
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
1. Includes interim dividend of US$0.1131 per share paid to Shareholders registered at the close of business on 29 September 2023.
2. Includes finance lease receivables in respect of aircraft on leases classified as finance leases in accordance with IFRS 16 (Leases).
3. Includes the insurance recovery in respect of aircraft in Russia of US$258 million in FY2023.
4. Includes the impairment of aircraft in Russia in FY2022.
5. Earnings per share is calculated by dividing net profit after tax by total number of shares outstanding at 31 December 2023 and 31 December 2022. Number of shares outstanding at 31 December 2023 and 31 December 2022 was 694,010,334.
6. Adjusted for disposition of 11 owned and one managed aircraft under insurance settlements.
About BOC Aviation
BOC Aviation is a leading global aircraft operating leasing company with a fleet of 684 aircraft owned, managed and on order. Its owned and managed fleet was leased to 91 airlines in 45 countries and regions worldwide as at 31 December 2023. BOC Aviation is listed on the Hong Kong Stock Exchange (HKEx code: 2588) and has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin. For more information, visit www.bocaviation.com.
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For more information, please contact:
Timothy ROSS
Tel: +65 6325 9878
Mobile: +65 9837 9873
[email protected]
www.bocaviation.com