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BOC AVIATION REPORTS UNAUDITED FIRST-HALF NET PROFIT OF US$163 MILLION

Direct News Source

02-Sep-2013

BOC Aviation's unaudited net profit after tax for the first six months to 30 June 2013 was US$163 million, 57% higher than the same period last year.

During the first half, the company - which has been consistently profitable since it was founded in November 1993 - also exceeded US$1 billion in cumulative net profit after tax since Bank of China (BOC) acquired the Company in December 2006.

As of 30 June 2013, BOC Aviation's total assets had increased to US$9.9 billion after paying a dividend of US$113 million for the first time to the Bank of China Group. Cash stood at US$680 million, and debt-to-equity was 4:1.

As of 30 June 2013, BOC Aviation had a fleet of 223 modern aircraft flying with more than 50 airlines worldwide, comprising 198 owned and 25 managed aircraft, as well as 16 aircraft on committed purchase and leaseback with airlines. There were 30 new deliveries during the first half, including 10 aircraft on purchase and leaseback agreements, a record for a six-month period.

First-half highlights include leasing and delivering four new Airbus A320-200 aircraft to Vueling Airlines, three Boeing 777-300ER aircraft to Thai Airways, and in a first for the Company, the delivery of two new Embraer E190 aircraft to Jetairfly, an airline subsidiary of TUI Travel PLC.

The BOC Aviation portfolio is one of the youngest in the leasing business, with an average aircraft age of less than four years. The fleet is primarily based on the popular Airbus A320 family and Boeing Next Generation 737 series as well as the Embraer E190 family aircraft. It also includes select wide-body types, such as the Airbus A330 and Boeing 777.

"The Company will celebrate its 20th anniversary this year, having achieved two major milestones, accumulating US$1 billion in net profit after tax since the Bank of China acquisition and paying our first dividend to the BOC Group in June," said Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation.

"In the first 20 years, we have built a strong balance sheet and a pipeline of future orders for the next phase of our growth,'' Martin said. "We are justifiably proud of our achievements but also mindful we continue to require focus, discipline, management experience and retention of professionals, and robust risk management processes."

BOC Aviation is 100% owned by Bank of China.