Dubai Aerospace Enterprise's Q1 net profit up 91pc
DUBAI, May 7, 2022
Dubai Aerospace Enterprise (DAE) has reported that its net income for the first three months before exceptional items increased to hit $46.6 million, up 91% over last year. While on operational side DAE's total number of aircraft in the fleet rose to 384., of which 295 are fully owned.
Announcing the financial results for the three months ended March 31, 2022, DAE said the loss after exceptional items for the three months ended March 31, 2022, was $491.3 million compared to a profit of $24.4 million last year.
Operating profit before exceptional items for the three-month period was $109.1 million compared to $113.8 million for the three months ended March 31, 2021. During the three months ended March 31, 2022, there was a decrease in lease revenue offset by an increase in gain on disposal of aircraft.
Operating loss after exceptional items for the three months ended March 31, 2022, was $467.4 million compared to an operating profit $113.8 million last year.
During the three months ended March 31, 2022, there was an asset write-off of $576.5 million relating to certain aircraft in Russia not in the group’s control.
Cash flow from operating activities for the three months too posted a steady growth increasing by 63.7% to $357 million compared to $218 million last year.
According to DAE, its total assets stood at $11.64 billion for March 31, 2022 compared to $12.6 billion last year. This decrease was due to the asset write-off of certain aircraft in Russia not in the group’s control.
The available liquidity for the three-month period was seen at $2.56 billion compared to $2.91 billion.
On its key operational highlights, DAE said during the three months ended March 31, it had closed a new $1 billion revolving credit facility. Also its 2021 results were adjusted to exclude one-time bond redemption costs of $16.1 million incurred during the three months ended March 31, 2021.
The Dubai group said its total number of aircraft in the fleet as of March 31, 2022 stood at 384, of which 295 were fully owned, 81 managed and 8 committed aircraft.
Commenting on the Q1 results, CEO Firoz Tarapore said: "Our financial results demonstrate the underlying strength of DAE’s franchise, and the continuing demand-led recovery of global air travel. We continue to see a trend toward air travel normalcy with all major indicators pointing toward a strong summer season ahead for our airline customers."
"DAE proactively addressed the loss of control of our aircraft on lease to airlines in Russia by writing off our net investment. We have filed claims of $1 billion under certain insurance policies and expect to file additional claims to recover amounts due to us. Our capital adequacy and liquidity metrics remain robust," he added.
According to him, DAE Engineering had another strong quarter, with its Joramco business again achieving record revenue, as well as adding and renewing a number of large maintenance agreements, including with GetJet Airlines, DHL, Ryanair, and Corendon Airlines in the quarter.
"We look forward to continuing to expand our engineering business," he added.-TradeArabia News Service
