DAE posts 35.7% drop in 9-month net profit

Dubai Aerospace Enterprise (DAE) reported on Wednesday 35.7 per cent drop in net profit for the first nine months of 2020.

Net profits fell by $93.2 million to $167.3 million in the first three quarters from $260.5 million during the same 2019 period, DAE said in a statement.

The leading aircraft leasing firm said its revenues also dropped to $984.1 million from $1,085.1 million year-on-year.

Firoz Tarapore, DAE’s CEO, said the third quarter of 2020 was characterised by excellent new business origination, strong capitalisation, robust liquidity and continuing efforts to assist our clients in this difficult operating environment.

In the third quarter, DAE’s cash collection rate increased to 77 per cent from 69 per cent q-on-q 20. For the nine months cash collection rate was 80 per cent.

“During Q3 2020, we signed agreements to acquire 31 aircraft with a total value of approximately $1.1 billion, of which approximately $0.2 billion was booked in Q3 2020. The remainder will be booked in Q4 2020 and 2021,” said Tarapore.

“Throughout the quarter, we maintained robust liquidity and ended this period with available liquidity of $2.1 billion after repaying a $430 million bond in August. Furthermore, we ended the quarter with strong capital levels – our net debt-to-equity ratio was below 2.5 times. Our strong financial condition and our disciplined risk management practices facilitated confirmation of our investment grade ratings from Moody’s (Baa3) and Fitch (BBB-),” said the CEO.

He said the leasing firm has executed deferral relief packages incorporating lease extensions and other lease value enhancements with 21 customers. The total value of these deferral relief packages is $155 million or 13 per cent of trailing twelve months lease revenue. Of the total deferrals, $110 million has been incurred and $45 million relates to future periods.

-- issacjohn@khaleejtimes.com