Avolon reports $141 million of net income in Q3
Dublin | 25 October 2022: Avolon, the international aircraft leasing company, announces results for the third quarter (Q3) of 2022.
2022 THIRD QUARTER | FINANCIAL & BUSINESS HIGHLIGHTS
| INCOME & CASHFLOW ($ million) | Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 |
|---|---|---|---|---|
| Lease Revenue | 546 | 518 | 1,743 | 1,598 |
| Operating Cashflow | 278 | 237 | 903 | 549 |
| Net Income | 141 | 6 | (33) | (14) |
| Net Income (excluding Russia) | 141 | 6 | 227 | (14) |
| BALANCE SHEET ($ million) | Q3 2022 | FY 2021 | CHANGE |
|---|---|---|---|
| Total Available Liquidity (inc. contracted sales) | 6,781 | 6,387 | 394 |
| Total Assets | 30,020 | 30,984 | (964) |
| Secured Debt / Total Assets | 20% | 20% | - |
| Net Debt to Equity | 2.3x | 2.4x | (0.1x) |
- Net Income for the three months to 30 September was $141 million and $227 million for the nine months to 30 September (excluding the impact of Russia);
- Recognised $546 million of lease revenue and generated $278 million of net cash from operating activities in the quarter;
- Ended the quarter with total available liquidity and contracted sales of approximately $6.8 billion, including $5.7 billion of undrawn debt facilities;
- Ended the quarter with $16 billion of unencumbered assets and net leverage of 2.3x;
- Agreed a landmark transaction with Malaysia Airlines for the financing of 20 A330-900neo aircraft valued at over $2 billion;
- Upsized unsecured revolving credit facility by $0.2 billion bringing the total facility size to $4.6 billion and executed a $0.7 billion term financing facility maturing 2029; and
- Post quarter end, Avolon announced the appointment of Ross O’Connor as Chief Financial Officer, Felipe Campos as Chief Operating Officer and Jim Morrison as Chief Risk Officer.
2022 THIRD QUARTER | FLEET HIGHLIGHTS
- Executed a total of 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
- Sold 13 owned aircraft and 4 engines during the quarter and entered into Letters of Intent for the sale of 7 owned aircraft;
- Delivered a total of 4 aircraft to 3 customers and transitioned 7 aircraft to follow-on lessees;
- Owned and managed fleet of 568 aircraft at quarter end, with total orders and commitments for 265 fuel-efficient, new technology aircraft;
- Average owned fleet age of 6.4 years with an average remaining lease term of 6.8 years; and
- Ended the quarter with a total of 149 airline customers operating in 63 countries.
Andy Cronin, CEO, commented: “The third quarter contained a number of key milestones for our business, including delivering our strongest and most profitable quarter post pandemic, a landmark aircraft financing transaction with Malaysia Airlines, and the successful completion of our leadership transition. We also raised close to $1 billion of new capital and saw all of our key financial metrics strengthen during the quarter, further enhancing our balance sheet.
As the recovery in international and long-haul traffic gains momentum, we are seeing robust demand at attractive lease rates for our young, fuel-efficient aircraft. This market backdrop, our balance sheet strength and our strong cashflow profile positions Avolon to continue to drive an improving earnings performance in the period ahead.”