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Tuesday, 31 March 2009

Record profit for BOC Aviation
10:01 PM :: 0 Comments ::

SINGAPORE: BOC Aviation has recorded a net profit after tax of US$107 million for last year, 32% higher than the $81 million earned in 2007. It is the first year BOC has achieved a net profit after tax of more than $100 million.
In the first half of last year the company was a net seller of aircraft, and in the final quarter was a strategic buyer as competition eased, BOC says in a statement.
Throughout the year, continued emphasis was placed on forward placements of its own orders with airlines. With this successful strategy, BOC ended the year with only one new aircraft due to be placed next year. Thereafter, the next new aircraft is available in May 2011.
Based in Singapore, BOC recorded higher lease rentals from a bigger portfolio as forward placements of aircraft on long-term leases in previous years generated a steady stream of rental revenue. The company took delivery of 26 aircraft during the year, of which 13 were delivered in the last quarter. Continued financial discipline and lower prevailing interest rates also contributed to the improved profit.

In the first half of the year, the company took advantage of favourable market conditions to sell 12 aircraft.
With a well-balanced portfolio, BOC Aviation’s fleet is one of the youngest in the industry with an average fleet age of four years. It has a broadly diversified base of carriers in all major continents. At year end, the company's portfolio comprised 92 aircraft, 73 owned and 19 managed, and an order book of 71 aircraft.
“Global economic and financial upheavals last year presented a set of unprecedented challenges for the aviation industry,” says CEO/managing director Robert Martin.
“With a dynamic and forward-looking strategy, we were able to achieve this significant
profit milestone in our company’s history. Our balance sheet remains robust with a debt-to-equity ratio of less than 3.5:1.”
He says the company has a strong cash position and backstop lines of US$855 million available. “We are well positioned to handle the challenges and opportunities of a downturn.”
BOC Aviation is 100% owned by the Bank of China, the third largest bank in the world.

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