Q3 2019 profits climb 17% to US$161 million
Dublin | 31 October, 2019 Avolon, the international aircraft leasing company, announces results for the third quarter of 2019 (‘Q3’).
2019 THIRD QUARTER | FINANCIAL HIGHLIGHTS
| US$ million | Q3 2019 | Q3 2018 | CHANGE |
|---|---|---|---|
| Total Revenue | 654 | 627 | +4% |
| Profit for the quarter | 161 | 138 | +17% |
| Net Cash from Operating Activities | 612 | 580 | +6% |
| Total Available Liquidity | 6,308 | 5,978 | +6% |
| Total Assets | 28,385 | 28,191 | +1% |
| Net Debt to Equity | 2.1x | 2.3x |
- Total revenue for the quarter was US$654 million;
- Generated US$612 million of net cash from operating activities in the quarter;
- Delivered US$161 million in profit for the quarter;
- At 30 September 2019, Avolon had US$16.4 billion future contracted rental cashflows;
- Upsized our unsecured revolving credit facility by US$225 million, bringing the total facility size to over US$3 billion, an increase of $1.24 billion or 69% of total size since Q3 2018;
- Extended the availability period of our unsecured revolving credit facility by 21 months to April 2024 and reduced the facility margin by 50 basis points to 1.25%;
- Declared a dividend of US$285 million in line with stated dividend policy to maintain investment grade financial metrics; and,
- At quarter end, Avolon had US$6.3 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured debt.
2019 THIRD QUARTER | OPERATING HIGHLIGHTS
- Owned and managed fleet of 527 aircraft, with total orders and commitments for 387 new technology aircraft;
- Executed a total of 21 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
- Delivered a total of 8 new aircraft to 5 customers and transitioned 4 aircraft to follow-on lessees;
- Sold 10 aircraft during the quarter, 3 of which were managed assets, and also disposed of 1 additional managed aircraft attributable to an insured total loss;
- Total of 152 airline customers operating in 61 countries.
Dómhnal Slattery, Avolon CEO, commented: "We have delivered a strong performance this quarter with a 17% increase in net income to $161 million. This result is testament to the hard work of every member of the Avolon team operating from our 7 offices globally.
It is a challenging industry backdrop, but we continue to be nimble and are well positioned for all market conditions. Our investment grade rating continues to drive down the cost of our debt and further improve our already strong credit metrics. We have $6.3 billion of available liquidity to sustain the growth of our business and support the financing needs of our airline clients around the world.”