Press Release
BOC Aviation Reports Record Profits
27 Mar 2017
BOC Aviation Limited (“BOC Aviation” or the “Company”) is pleased to announce its audited financial results for the full year ended 31 December 2016.
Robert Martin, Managing Director and Chief Executive Officer, said: “2016 was an outstanding year for BOC Aviation that included another year of record profitability, following a successful initial public offering, which was the largest aircraft operating lessor IPO in history. Our net profit after tax of US$418 million represented a 22% increase over 2015, itself a record year, and we generated a return on equity of 14.4% after raising US$550 million in new equity in conjunction with our IPO.”
Financial Highlights
Our financial highlights for the year ended 31 December 2016 are:
- Total revenues and other income rose 9% year-on-year, to US$1,193 million
- Net profit after tax was US$418 million, an increase of 22% over 2015
- Earnings per share of US$0.60, based on Shares outstanding[1] at 31 December 2016
- Total assets increased 8% year-on-year, to US$13.4 billion at 31 December 2016
- Maintained strong liquidity with US$558 million in total cash and fixed deposits, and more than US$4 billion in undrawn committed credit facilities at 31 December 2016
- Largest aircraft operating leasing company initial public offering in history
- Board recommends a final dividend for 2016 of US$0.119 per Share, pending approval at the Annual General Meeting to be held on 31 May 2017. The final dividend will be payable to Shareholders registered at the close of business on the record date, being Monday, 12 June 2017, bringing the total dividend for 2016 to US$0.18[2] per Share
Portfolio and Operational Highlights
As at 31 December 2016, BOC Aviation:
- Had a portfolio comprising 284 owned and managed aircraft, with an average aircraft age of 3.2 years[3] and an average remaining lease term of 7.3 years[3] for the owned aircraft fleet
- Portfolio utilisation of 99.9% and cash collection from airlines of 99.8%
- Leased aircraft to 68 airlines in 32 countries and regions
- Took delivery of 67 aircraft (including 11 acquired by airlines on delivery) during 2016, with 27 aircraft delivered in 4Q 2016 alone
- Signed 79 leases in 2016
- Sold 37 owned and one managed aircraft during 2016
- Had an orderbook of 199[4] aircraft
- Increased the number of new aircraft due for delivery in 2017 to 71
Key Financial Data
|
|
Year ended 31 December
|
|
|
|
2016
US$’m
|
2015
US$’m
|
Change[5]
%
|
|
Statement of Profit or Loss
|
|
|
|
|
Revenues and other income
|
1,193
|
1,091
|
9.4
|
|
Costs and expenses
|
(719)
|
(690)
|
4.4
|
|
Profit before income tax
|
474
|
401
|
18.0
|
|
Net profit after income tax
|
418
|
343
|
21.8
|
|
|
|
|
|
|
|
As at
|
As at
|
|
|
|
31 Dec 2016
US$’m
|
31 Dec 2015
US$’m
|
Change[5]
%
|
|
Statement of Financial Position
|
|
|
|
|
Cash and fixed deposits
|
558
|
507
|
10.2
|
|
Total current assets
|
820
|
754
|
8.7
|
|
Total non-current assets
|
12,625
|
11,720
|
7.7
|
|
Total assets
|
13,445
|
12,474
|
7.8
|
|
|
|
|
|
|
Total current liabilities
|
1,190
|
1,215
|
(2.1)
|
|
Total non-current liabilities
|
8,873
|
8,819
|
0.6
|
|
Total liabilities
|
10,063
|
10,034
|
0.3
|
|
|
|
|
|
|
Net Assets
|
3,382
|
2,440
|
38.6
|
|
|
|
|
|
|
Key financial ratios
|
|
|
|
|
Net assets per share (US$)[6]
|
4.87
|
4.14
|
|
|
Debt to equity (times)
|
2.6
|
3.7
|
|
Aircraft Portfolio including Order Book (at 31 December 2016, by number of aircraft)
|
Aircraft Type
|
Owned Aircraft
|
Managed Aircraft
|
Aircraft on Order*
|
Total
|
|
Airbus A320CEO family
|
122
|
13
|
27
|
162
|
|
Airbus A320NEO family
|
0
|
0
|
64
|
64
|
|
Airbus A330 family
|
11
|
7
|
2
|
20
|
|
Airbus A350-900
|
0
|
0
|
6
|
6
|
|
Boeing 737NG family
|
83
|
9
|
37
|
129
|
|
Boeing 737-MAX 8
|
0
|
0
|
61
|
61
|
|
Boeing 777-300ER
|
16
|
2
|
2
|
20
|
|
Boeing 777-300
|
0
|
1
|
0
|
1
|
|
Boeing 787
|
1
|
0
|
0
|
1
|
|
Embraer E190 family
|
11
|
2
|
0
|
13
|
|
Freighters
|
2
|
4
|
0
|
6
|
|
Total
|
246
|
38
|
199
|
483
|
* Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery.
The full year 2016 financial results presentation slides and 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 on 27 March 2017.
About BOC Aviation
BOC Aviation is a leading global aircraft operating leasing company with a fleet of 483 aircraft owned, managed or on order. Its owned and managed fleet was leased to 68 airlines worldwide in 32 countries as at 31 December 2016. BOC Aviation is listed on the Hong Kong Stock Exchange (HKEx code: 2588) and has its headquarters in Singapore with offices in Dublin, London and Tianjin. For more information, visit www.bocaviation.com.
*******
For more information, please contact:
Timothy ROSS
Tel: +65 6325 9878
Mobile: +65 9837 9873
[email protected]
www.bocaviation.com
[1] Number of Shares outstanding at 31 December 2016 was 694,010,334 and at 31 December 2015 was 589,908,834.
[2] Includes interim dividend of US$0.061 per Share paid to Shareholders registered at the close of business on 19 September 2016.
[3] Weighted by net book value
[4] Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery.
[5] Percentage change is calculated based on numbers in US$ thousands as shown in the consolidated financial statements.
[6] Number of Shares outstanding at 31 December 2016 was 694,010,334 and at 31 December 2015 was 589,908,834.