Dubai Aerospace Enterprises reports $377.5 million profit in 2019
Company’s profitability, capital adequacy and liquidity metrics remain very strong
Dubai: Dubai Aerospace Enterprise (DAE) Ltd on Wednesday reported a profit of $377.5 million in 2019 compared to $372.9 million for the year 2018.
Operating profit for the year ended 31 December, 2019 was $785.9 million compared to $783.9 million for 2018. During the year ended 31 December, 2019 there was an increase in gain on disposal of aircraft offset by an increase in depreciation and amortisation expense and lower lease revenue.
Adjusted EBITDA [earnings before interest, tax, depreciation and amortization] was $1.35 billion for the year ended 31 December, 2019 increasing from $1.34 billion for 2018.
“The growth of DAE in the last few years has boosted the contribution of aviation to Dubai’s success. DAE has executed its strategy effectively and is today a successful, large-scale lessor with more than 400 aircraft in its portfolio. We are pleased with the progress DAE has made with the support it has received from ICD,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAE.
The company’s total revenue was $1.42 billion for the year ended 31 December, 2019 compared to $1.43 billion in 2018. Total lease revenue decreased to $1.33 billion last year, compared $1.36 billion for the year ended 31 December, 2018. This decrease was due primarily to decrease in the number of revenue-generating aircraft in the fleet, increased amortisation of lease incentives and higher bad debt provision, partly offset by increased maintenance revenue which mainly related to end of lease compensation payments, during 2019.
DAE’s total assets were at $13.53 billion at yearend 2019, compared to $14.70 billion as at yearend 2018.
“DAE has distinguished itself in the marketplace by creating a differentiated go-to-market strategy. This has translated into high and stable returns and a market leading position. In 2019, we at ICD (Investment Corporation of Dubai) increased our ownership percentage of DAE to 100 per cent. We are delighted with DAE’s performance so far and look forward to growing the franchise in the future,” said Khalifa AlDaboos, Managing Director of DAE and Deputy Chief Executive Officer of ICD.
The company purchased 11 aircraft last year compared to 28 in 2018 and disposed of 34 aircraft compared to 26 aircraft in 2018. Total aircraft in the fleet at 31 December, 2019 was 357.
Available liquidity at the yearend 2019 was $2.40 billion, increasing from $1.55 billion at yearend, 2018. During the year, the company received a $1.4 billion investment mandate from one of the world’s largest fund managers to source and manage a portfolio of aircraft.
“2019 was a breakout year for us in terms of growing our aircraft asset management business. In 2019, we received the largest single mandate in the industry to source and manage aircraft assets. Our profitability, capital adequacy and liquidity metrics remain very strong,” said Firoz Tarapore, Chief Executive Officer of DAE.