Avolon: 2019 Third Quarter Results

Avolon announces Q3 2019 profit of US$161 million

DUBLIN--()--Avolon, the international aircraft leasing company, announces results for the third quarter of 2019 (‘Q3’).

2019 THIRD QUARTER | FINANCIAL HIGHLIGHTS

US$ MILLION

Q3 2019

Q3 2018

CHANGE

Total Revenue

654

627

+4%

Profit for the quarter

161

138

+17%

Net Cash from Operating Activities

612

580

+6%

Total Available Liquidity

6,308

5,978

+6%

Total Assets

28,385

28,191

+1%

Net Debt to Equity

2.1x

2.3x

 

  • Total revenue for the quarter was US$654 million;
  • Generated US$612 million of net cash from operating activities in the quarter;
  • Delivered US$161 million in profit for the quarter;
  • At 30 September 2019, Avolon had US$16.4 billion future contracted rental cashflows;
  • Upsized our unsecured revolving credit facility by US$225 million, bringing the total facility size to over US$3 billion, an increase of $1.24 billion or 69% of total size since Q3 2018;
  • Extended the availability period of our unsecured revolving credit facility by 21 months to April 2024 and reduced the facility margin by 50 basis points to 1.25%;
  • Declared a dividend of US$285 million in line with stated dividend policy to maintain investment grade financial metrics; and,
  • At quarter end, Avolon had US$6.3 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured debt.

2019 Third Quarter | Operating Highlights

  • Owned and managed fleet of 527 aircraft, with total orders and commitments for 387 new technology aircraft;
  • Executed a total of 21 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
  • Delivered a total of 8 new aircraft to 5 customers and transitioned 4 aircraft to follow-on lessees;
  • Sold 10 aircraft during the quarter, 3 of which were managed assets, and also disposed of 1 additional managed aircraft attributable to an insured total loss;
  • Total of 152 airline customers operating in 61 countries.

Dómhnal Slattery, Avolon CEO, commented: “We have delivered a strong performance this quarter with a 17% increase in net income to $161 million. This result is testament to the hard work of every member of the Avolon team operating from our 7 offices globally.
It is a challenging industry backdrop, but we continue to be nimble and are well positioned for all market conditions. Our investment grade rating continues to drive down the cost of our debt and further improve our already strong credit metrics. We have $6.3 billion of available liquidity to sustain the growth of our business and support the financing needs of our airline clients around the world.”

ENDS

About Avolon
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 world’s third largest aircraft leasing business with an owned, managed and committed fleet, as of 30 September 2019 of 914 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 Avolon’s 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 management’s 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.

Contacts

Ross O’Connor
Head of Investor Relations
roconnor@avolon.aero
T: +353 1 231 5818

Emmet Moloney
Head of Communication
emoloney@avolon.aero
T: +353 1 556 4429                                             

Jonathan Neilan
FTI Consulting
avolon@fticonsulting.com
M: +353 86 231 4135 

Contacts

Ross O’Connor
Head of Investor Relations
roconnor@avolon.aero
T: +353 1 231 5818

Emmet Moloney
Head of Communication
emoloney@avolon.aero
T: +353 1 556 4429                                             

Jonathan Neilan
FTI Consulting
avolon@fticonsulting.com
M: +353 86 231 4135