DAE’s profit rises 186% to $140.1 million in first half

Dubai Aerospace Enterprise (DAE) reported its financial results for the six months ended June 30, 2022. The firms’ profit before exceptional items increased by 186 per cent to $140.1 million.

Cash flows from operating activities increased by 36 per cent to $678.5 million and the liquidity ratio exceptionally strong at 667 per cent. Dubai Aerospace Enterprise’s available liquidity at $2.7 billion and the bond repurchases at $77 million.

2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia. In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of $576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the six months ended June 30, 2022. 2021 results are adjusted to exclude one-time bond redemption costs of $16.1 million incurred during the six months ended June 30, 2021.

Cash Collection Rate is defined as the sum of all cash collected from lease rentals as a percentage of the total contracted receivables due for the period after incorporating the effect of any lease amendment or deferral agreements executed as of June 30, 2022.

Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our financial results are reflective of the strength of DAE’s franchise despite emerging macroeconomic headwinds. Air travel demand continues to be strong and all leading indicators continue to point to a strong summer season for our airline customers. Supply side constraints, particularly among airport ecosystems, as well as inflationary concerns have not dented demand; however, is likely going to be a key constraint as airlines globally work towards returning to 2019 levels.

DAE Capital continues to be active in the secondary trading market, where we have committed approximately $750 million in the first half of the year to acquire assets for both our owned portfolio and our managed portfolios. We have maintained a robust pace of asset sales in the current market environment. We have further cemented our position as a leading global aircraft asset manager by securing a mandate to acquire up to $1.75 billion of additional aircraft assets.