Cash flows from operating activities for the period decreased by 20.5 per cent to $283.8 million. Image Credit: Supplied/Gulf News Archives

Dubai Aerospace Enterprise (DAE) Ltd reported a 49 per cent increase in profit before exceptional items at $69.2 million in the first quarter of 2023, compared to $46.6 million in the year-ago period.

Operating profit increased by $45.6 million to $154.6 million, the company said on Wednesday.

“Our first quarter 2023 financial results reflect a strong operating environment for airlines, an improving collections and credit profile, and profitable divestment activity. We have successfully integrated the acquisition of SKY Fund I into our platform following the acquisition in the fourth quarter of 2022,” said DAE CEO Firoz Tarapore.

“Our profitability metrics improved substantially during the quarter, and our credit quality and liquidity metrics remained strong. Interest rate volatility allowed us to repurchase $205 million of principal amount of our bonds during the quarter. We have increased our bond repurchase authorization following additional repurchases in the second quarter.”

Cash flows from operating activities for the period decreased by 20.5 per cent to $283.8 million compared to $357.0 million in the corresponding period last year.

“This is primarily due to higher maintenance reserve receipts in the prior period driven by the drawdown of letters of credit associated with aircraft previously leased to Russian customers. Excluding the impact of the letters of credit drawdown, net cash generated from operating activities for the three months ended March 31, 2023 increased by $4.1 million or 1.5 per cent as compared to the prior period,” the company said in a statement.

Total assets stood at $12,607 million at March 31, 2023 compared to $12,709.1 million at December 31, 2022.

The company had 437 aircraft in its fleet at the end of the quarter, compared to 440 at the end of the preceding quarter.