Dubai Aerospace posts 36% drop in profit for first nine months of 2020
The third quarter saw “excellent” new business origination, says CEO
Dubai:Dubai Aerospace Enterprise (DAE) reported a 36 per cent fall in profit for the nine months ended September 30, 2020. Net income dropped to $167.3 million (Dh614.49 million) during the period, compared to $260.5 million (Dh956.82 million), a year earlier.
Total revenue fell to $984.1 million (Dh3.6 billion) from about $1.1 billion (Dh4.4 billion) last year.
“The third quarter of 2020 was characterized by excellent new business origination, strong capitalization, robust liquidity and continuing efforts to assist our clients in this difficult operating environment,” said Firoz Tarapore, DAE’s CEO, in a statement on Wednesday.
DAE signed agreements to acquire 31 aircraft with a total value of about $1.1 billion, of which about $200 million was booked in the third quarter. The remainder will be booked in the fourth quarter and the next year.
The company said it maintained "robust" liquidity throughout the quarter and ended the period with available liquidity of $2.1 billion after repaying a $430 million bond in August.
“We continue to work with our customers on a case-by-case basis to provide a range of solutions that create value for both our clients and for DAE," said Tarapore.
“There are about 30 airlines that have either declared bankruptcy or entered proceedings,” said Firoz Tarapore, DAE’s CEO. Those carriers “had 900 aircraft that were leased, and the value of those … is about $29 billion, and our exposure to that is about $400 million.”
“It’s a very small, manageable number for us and a number that we’re quite pleased with,” said Tarapore.
Earlier, DAE reported a 36 per cent fall in profit for the nine months ended September 30, 2020. Net income dropped to $167.3 million (Dh614.49 million) during the period, compared to $260.5 million (Dh956.82 million), a year earlier.
The company said it maintained “robust” liquidity throughout the quarter and ended the period with available liquidity of $2.1 billion after repaying a $430 million bond in August.