Avolon, the international aircraft leasing company, announces results for the first quarter of 2019 (˜Q1).
2019 FIRST QUARTER | FINANCIAL HIGHLIGHTS
|US$ MILLION||Q1 2019||Q1 2018||CHANGE|
|Gain on disposal of PPE / finance lease receivables||83||8||938%|
|Profit for the quarter||176||152||16%|
|Total Available Liquidity||5,348||5,212||3%|
|Net Debt to Equity||2.1x||2.2x|
- Lease revenue for the quarter was US$616 million;
- Generated US$454 million of net cash from operating activities in the quarter;
- Delivered US$176 million in profit for the quarter, an increase of 16% year on year;
- At 31 March 2019, Avolon had US$16.5 billion future contracted rental cashflows; and
- At quarter end, Avolon had US$5.3 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.
2019 First Quarter | Operating Highlights
- Owned and managed fleet of 553 aircraft, with total orders and commitments for 398 new technology aircraft;
- Executed a total of 8 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
- Delivered a total of 12 new aircraft to 9 customers and transitioned 4 aircraft to follow-on lessees;
- Sold 20 aircraft during the quarter including the sale of 10 regional aircraft; and
- Total of 150 airline customers operating in 61 countries.
2019 First Quarter | Strategic Highlights
- Closing of a private offering of US$1.1 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$750 million;
- Closing of inaugural US$500 million three-year unsecured term loan facility which was upsized by over 60% based on the original launch size of US$300 million; and
- Upsized unsecured revolving credit facility by US$125 million bringing the total facility size to over US$2.3 billion;
Post Quarter-End Updates
- Closing of a private offering by Avolon of US$2.5 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$1.8 billion due to significant investor demand; and
- Avolons corporate credit and senior unsecured notes ratings were upgraded to investment grade by Fitch Ratings, Moodys Investors Service and S&P Global Ratings. Avolon now has a corporate rating of BBB-, Baa3, and BBB- respectively, all with stable outlook.
D³mhnal Slattery, Avolon CEO, commented: The first quarter represents another strong quarter of performance for Avolon, highlighted by the delivery of US$176 million profit for the quarter. The strong financial performance is underpinned by another active quarter for aircraft trading “ a testament to the continued hard work, focus and commitment of the Avolon team.
Since quarter end, we have successfully achieved an investment grade ratings profile – a key corporate objective for 2019 and well ahead of our expected timeframe. Our enhanced credit rating profile will provide us with even greater financial flexibility and access to a deeper pool of capital.
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the worlds third largest aircraft leasing business with an owned, managed and committed fleet, as of 31 March 2019 of 951 aircraft.
Website: www.avolon.aero Twitter: @avolon_aero
Note Regarding Forward-Looking Statements
This document includes forward-looking statements, beliefs or opinions, including statements with respect to Avolons business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our managements current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as believe, expects, may, will, could, should, shall, risk, intends, estimates, aims, plans, predicts, continues, assumes, positioned or anticipates or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved.
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