Dubai, U.A.E., 30 October 2024 – Dubai Aerospace Enterprise (DAE) Ltd (“DAE”) today reported its financial results for the nine months ended September 30, 2024. The consolidated financial statements can be found here.
Selected Financial Highlights:
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Nine Months Ended
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US$ millions
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Sep 30, 2024
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Sep 30, 2023
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Total Revenue
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1,017.1
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989.2
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Profit before Tax
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326.6
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207.5
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Operating Cash Flow
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904.1
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928.9
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Adjusted Pre-Tax Profit Margin (1)
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23.1%
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21.0%
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Adjusted Pre-Tax Return on Equity (1)
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10.9%
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9.4%
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As at
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US$ millions
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Sep 30, 2024
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Dec 31, 2023
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Total Assets
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12,770.5
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12,262.5
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Net Loans and Borrowings
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8,122.0
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7,592.1
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Available Liquidity
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3,980.5
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4,062.2
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Net-Debt-to-Equity
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2.45x
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2.53x
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Unsecured Debt Percentage
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78.3%
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73.3%
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Liquidity Coverage Ratio
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335%
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290%
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(1) Adjusted to exclude insurance recoveries.
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Selected Business and Operating Highlights:
- Signed agreements to acquire 23 aircraft for approximately US$1.1 billion (91% narrow-body; 86% next-generation technology aircraft)
- Number of aircraft acquired: 47 (owned: 11; managed: 36)
- Number of aircraft sold: 47 (owned: 16; managed: 31)
- Lease agreements, extensions, and amendments signed: 103 (owned: 85; managed: 18)
- Owned portfolio contracted: 99.0%
- Number of man hours booked (DAE Engineering): ~1,125,000
- Number of checks performed (DAE Engineering): 212
Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Profit before tax rose by 57% (13% before exceptional items) on revenue growth of 3% resulting in pre-tax profitability margins of 23% and pre-tax return-on-equity of 11%. We continue to manage our balance sheet prudently with our liquidity and capital adequacy metrics remaining exceptionally strong. We ended the quarter with US$4.0 billion in liquidity and a Liquidity Coverage Ratio of 335%. Leverage, as measured by net-debt-to-equity, improved to 2.45x from 2.53x at year-end 2023.
In 2024, we announced the signing of agreements to acquire 33 aircraft from multiple counterparties for an aggregate consideration of approximately US$1.6 billion. When consolidated, the acquired aircraft portfolios have a weighted average age of 4.4 years, a weighted average remaining lease term of 8.0 years and are on lease to 17 airlines in 13 countries. The consolidated portfolio consists of 94% narrow-body aircraft by value, and 90% of the portfolio is next-generation technology aircraft.
Our order book positions are placed until the second quarter of 2026, although continued delivery uncertainty from Boeing is delaying near-term deliveries.
DAE Engineering’s revenue increased year-on-year by 35% to US$131 million, and profitability increased by 128% to USU$27.6 million. The development of additional state-of-the-art hangar capacity at our facility in Amman, Jordan remains on track with our aim to have an additional five hangar lines in operation by the end of 2024.”
Webcast and Conference Call
In connection with the announcement of DAE’s results for the nine months ended September 30, 2024, management will host a conference call on Wednesday, October 30, 2024 at 09:00 EDT / 13:00 GMT / 17:00 GST / 21:00 SGT.
The call can be accessed live by clicking here from your laptop, tablet, or mobile device, or by dialing one of the global dial-in numbers and quoting ‘Dubai Aerospace Enterprise’ when prompted.
Forward Looking Statements
Certain information contained in this Press Release may constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “continue”, “expect”, “anticipate”, “predict”, “project”, “plan”, “estimate”, “budget”, “assume”, “potential”, “future”, “intend” or “believe” or the negatives thereof or other comparable terminology. These statements reflect DAE’s current expectations and assumptions and involve known and unknown risks regarding future events, results or outcomes and are not guarantees of future results or financial condition. Actual results, performance, achievements, or conditions may differ materially from those in the forward‐looking statements and assumptions as a result of a number of factors, many of which are beyond DAE’s control.
Non-IFRS Financial Information
This Press Release may include certain non-IFRS financial information, such as Adjusted EBITDA, not prepared in accordance with IFRS. Because of the limitations of Adjusted EBITDA, it should not be considered as a substitute for financial information prepared or determined in accordance with IFRS, as applicable. Where applicable, DAE compensates for these limitations by relying primarily on its IFRS results and using Adjusted EBITDA only for supplemental purposes.
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