17 August, 2023

BOC Aviation releases its half year 2023 results

Aircraft leasing and management firm BOC Aviation has just released its unaudited results for the six months ended 30 June 2023, which demonstrate a strong performance and positive outlook.

The company reported net profit after tax of US$262 million for the first half of 2023 driven by higher lease rental income and on the back of rising global passenger traffic.  During the six months ended June 2023, we grew our total assets to almost US$23 billion and committed to acquire 23 aircraft to close the first half of 2023 with record total committed capital expenditure of US$11 billion.

The Board of Directors approved a distribution of US$0.1131 per share by way of interim dividend, which represents 30% of our NPAT in the first half of 2023 and reflects the Board’s continued confidence in our business outlook.

“In the first half of 2023, BOC Aviation reported NPAT of US$262 million, a 27% improvement on the core net profit after tax of US$206 million that we generated during the first half of last year,” Steven Townend, Deputy Managing Director and Chief Financial Officer, BOC Aviation, commented. “We saw strong demand for our aircraft and this was reflected in the growth that we achieved in our balance sheet, income and cashflow. Our robust delivery pipeline positions us well to capitalise on rising airline customer demand for the young, fuel-efficient aircraft in our fleet.”

Financial Overview

The following is our financial overview for the six months ended 30 June 2023:

• Total revenues and other income of US$1,061 million
• Net profit after tax of US$262 million, compared with net loss after tax of US$313
million, or core net profit1 after tax of US$206 million, in the first half of 2022
• Earnings per share of US$0.38 rose 27% compared with core1 earnings per share
of US$0.30 in the first half of 2022
• Interim dividend of US$0.1131 per share compared with US$0.0889 per share for
the first half of 2022
• Total assets rose 4% to US$22.9 billion as at 30 June 2023 compared with 31
December 2022, reflecting ongoing investments in aircraft
• Record first half operating cash flow net of interest of US$721 million
• Maintained strong liquidity with US$547 million in cash and short-term deposits2
in addition to US$5.2 billion in undrawn committed credit facilities as at 30 June 2023

Portfolio and Operational Overview
Our operational overview as at 30 June 2023 included:
• A portfolio of 6523

aircraft owned, managed and on order

• Owned fleet of 404 aircraft, with an average age of 4.7 years and an average
remaining lease term of 8.0 years, each weighted by net book value4
• An orderbook of 2133

aircraft scheduled for delivery through to 31 December 2029
• Total new aircraft deliveries of 16 aircraft, including one acquired by an airline
customer on delivery
• Transitioned eight used aircraft to airline customers
• Sold three aircraft from the owned fleet
• Signed 45 lease commitments in the first half of 2023
• Customer base of 91 airlines in 42 countries and regions in the owned and managed
• Owned aircraft utilisation at 99%
• Cash collection from airline customers of 101.8% for the first half of 2023 compared
with 96.9% in the first half of 2022
• Managed fleet comprised 35 aircraft