BOC Aviation Achieves Another Record Year of Profit
23 Mar 2010
BOC Aviation’s net profit after tax for the financial year ended 31 December 2009 hit another record high of US$137 million, an increase of 28% over the previous record of US$107 million achieved in 2008. Total assets as at 31 December 2009 were US$5.8 billion, up by 61% compared to a year earlier.
2009 was a unique year for BOC Aviation. It saw significant capital investment in new aircraft as the culmination of the Company’s counter-cyclical strategy that had begun with planning for the global downturn back in mid 2007. The Company was a net seller of aircraft in that year but became a net buyer from December 2008 onwards. To support the Company’s portfolio growth in 2009, Bank of China invested an additional US$100 million in equity which together with the year’s net profit of US$137 million increased total shareholder’s funds to US$960 million as at 31 December 2009, a 33% year on year growth over 2008.
As at end 2009, BOC Aviation had a portfolio of 142 aircraft, an increase of 54% over the 92 aircraft in the fleet a year ago. Of the 142 aircraft, 118 were owned and 24 were managed on behalf of third party investors.
Commenting on the results, Robert Martin, Managing Director & Chief Executive Officer of BOC Aviation said the Company has outperformed expectations during the most difficult year in aviation history. “We have an established platform made up of experienced professionals who planned in advance for the downturn, raised the necessary capital from our shareholder and then successfully executed our strategy again in 2009. In addition to our 17 scheduled aircraft deliveries from manufacturers, we supported both new and existing customers in 2009 by taking another 31 aircraft on long term purchase and leasebacks with leading airlines including Southwest, Alaska, Air France, and Cathay Pacific. As a leasing company, whose major costs are the purchase of aircraft and funding, the combination of the portfolio growth achieved at the bottom of the cycle and our low cost base leaves BOC Aviation well positioned for the upturn.”
*Notes for Editors:
(1) Headquartered in Singapore, BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio today of 149 modern aircraft operated by airlines worldwide. In addition, the Company has 49 aircraft on firm order and 4 on committed purchase and leasebacks for delivery through to 2013. 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