Avolon, the international aircraft leasing company has just announced its results for the second quarter of 2019 which showed a lease revenue of US$678 million.
Avolon has built a leading position in the global aircraft leasing industry. The scale of its business reflects the ambition of the Avolon team to focus on maintaining a fleet of young, fuel-efficient aircraft. It advises that its success is also built on clear corporate values which inform its interaction with all of its stakeholders. Currently, the firm has a total of 149 airline customers operating in 60 countries.
2019 SECOND QUARTER | FINANCIAL HIGHLIGHTS
| US$ MILLION | Q2 2019 | Q2 2018 | CHANGE |
|---|---|---|---|
| Lease Revenue | 678 | 632 | 7% |
| Gain on disposal of PPE / finance lease receivables | 26 | 29 | (10%) |
Profit for the quarter
| 185 | 249 |
(26%)
|
| Total Available Liquidity | 6,366 | 5,691 | 12% |
| Total Assets | 28,328 | 28,053 | 7% |
| Net Debt to Equity | 2.1x | 2.1x |
- Lease revenue for the quarter was US$678 million;
- Generated US$423 million of net cash from operating activities in the quarter;
- Delivered US$185 million in profit for the quarter;
- Finance expense impacted by US$83 million movement in non-cash gains and charges related to debt facility amendment and refinancing activity;
- At 30 June 2019, Avolon had US$16.6 billion future contracted rental cashflows; and
- At quarter end, Avolon had US$6.4 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.
2019 Second Quarter | Operating Highlights
- Owned and managed fleet of 530 aircraft, with total orders and commitments for 393 new technology aircraft;
- Executed a total of 24 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
- Delivered a total of 15 new aircraft to 10 customers and transitioned 11 aircraft to follow-on lessees;
- Sold 38 aircraft during the quarter including the sale of 34 regional aircraft; and
- Total of 149 airline customers operating in 60 countries.
2019 Second Quarter | Strategic Highlights
- 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;
- Corporate credit rating upgraded to investment grade by Fitch, Moody’s and S&P. Credit ratings at quarter end were:
- Fitch BBB- (Stable Outlook)
- Moody’s Baa3 (Stable Outlook)
- S&P BBB- (Stable Outlook)
- Upsized our unsecured revolving credit facility by US$488 million bringing the total facility size to over US$2.8 billion;
- Repriced our senior secured Term Loan B facility to LIBOR plus 1.75% in conjunction with the repayment of US$800 million of the facility; and
- Ordered 140 CFM LEAP-1A Engines, to power 70 A320neo family aircraft, valued at US$2 billion at list prices announced at 2019 Paris Air Show.
Dรณmhnal Slattery, Avolon CEO, commented: “The second quarter was headlined by our successful achievement of an Investment Grade rating profile - which was delivered well ahead of the expected timeframe and affirms our long-held view that we have an Investment Grade quality business.”
“We continued our strong financial and trading performance from the previous quarter, delivering total revenues of $682 million, a profit of $185 million and selling 38 aircraft. Our strong cashflow generating capabilities and consistent aircraft trading performance, coupled with our capital raising activities, resulted in Avolon ending the quarter with $6.4 billion of total available liquidity.”
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