BOC Aviation Achieves Record Net Profit for the Fifth Consecutive Year
25 Mar 2011
BOC Aviation’s net profit after tax for the financial year ended 31 December 2010 reached US$168 million, 22% higher than the previous record of US$137 million achieved a year ago. Total assets as at 31 December 2010 were US$6.6 billion, up by 14% compared to the prior year while shareholders’ equity rose 39% to US$1.3 billion.
During 2010, BOC Aviation took delivery of 32 aircraft which when combined with an effective funding strategy and strong financial discipline, resulted in higher operating profit. Highlights for the year included the order and placement of eight Boeing 777-300ER aircraft on long term leases with Thai Airways and a new order for 30 A320 family aircraft, scheduled for delivery from 2012 to 2014. In addition, the Company successfully raised US$1.6 billion in debt funding and accessed the Singapore bond market for the first time as BOC Aviation with a Medium Term Note issue. To support future portfolio growth, BOC Aviation drew down on a further equity investment of US$200 million from its 100% shareholder, Bank of China, in December 2010.
As at year end 2010, BOC Aviation had a portfolio of 166 aircraft of which 140 were owned and 26 managed, all in service with 43 airlines around the world. The Company had an order book of 65 aircraft with a further four aircraft due to be acquired in 2011 under committed purchase and leaseback deals. 34 of the aircraft on order have already been placed with lessees.
“We were prepared for the upturn of the industry,” said Mr. Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation. “Airlines have rebounded strongly from the crisis of the previous two years and made 2010 the most profitable year in airline history. By working closely with our customers, we achieved our targets and delivered another strong set of results. Our new aircraft orders were well-timed and set a platform for continued sustainable growth.”
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*Notes for Editors:
(1) Headquartered in Singapore, BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio today of 168 modern aircraft operated by airlines worldwide. In addition, the Company has 62 aircraft on firm order and three on committed purchase and leasebacks for delivery through to 2014. BOC Aviation has one of the youngest fleets in the industry with an average aircraft age of less than four years.
(2) BOC Aviation is 100% owned by Bank of China, one of the largest banks in the world.