Published on February 24th, 2019 | by Mark Dwyer0
30% Rise in Profits at Avolon
Dublin based Avolon, the international aircraft leasing company, reported record annual profits after tax of US$717 million for 2018. Other highlights from the 2018 full year results include:
- Lease revenue for the year was US$2.6 billion; an increase of 10% year on year;
- Generated US$2.2 billion of net cash from operating activities in 2018;
- Delivered US$717 million in profit for the year, an increase of 30% year on year;
- Declared and paid shareholder dividend of US$490 million;
- At year end Avolon had US$16.6 billion future contracted rental cashflows; and
- Ended 2018 with US$5.7 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.
Dómhnal Slattery, Avolon CEO, commented: “2018 represents another excellent year for Avolon during which we successfully executed on a number of key strategic objectives – a testament to the hard work, focus and commitment of the Avolon team. It was a record year for the business in which we generated US$2.2 billion of net cash from operating activities and delivered a 30% increase in profit.
The addition of ORIX as a shareholder, coupled with the increase in our unencumbered assets and reduction in our secured debt, represents significant progress towards securing our Investment Grade rating – a key corporate objective for 2019.”
Some of the 2018 Operating highlights at Avolon were:
- Delivered a total of 33 new aircraft, including the world’s first A330neo;
- Executed a total of 153 lease transactions and contracted sale agreements for 130 aircraft;
- Sold 87 aircraft with total proceeds from disposal of property, plant and equipment of US$2.2 billion in 2018 with a further 58 aircraft held for sale at year end, representing US$1.2 billion of aircraft related assets;
- Increased asset management activity with 49 managed aircraft at year end;
- Fleet utilization was 99.5% for 2018;
- Continued strong progress on placement of new order pipeline with 100% of committed fleet placed through to the end of 2019 and 80% placed through to the end of 2020;
- Owned, managed and committed fleet increased by 7% year on year to 971 aircraft at the end of 2018; and
- Average owned fleet age of 5.0 years with an average remaining lease term of 6.8 years.