Avolon: 2019 Second Quarter Results

Avolon announce Q2 2019 profit of US$185 million

DUBLIN--()--Avolon, the international aircraft leasing company, announces results for the second quarter of 2019 (‘Q2’).

2019 SECOND QUARTER | FINANCIAL HIGHLIGHTS

US$ MILLION

Q2 2019

Q2 2018

CHANGE

Lease Revenue

678

632

7%

Gain on disposal of PPE / finance lease receivables

26

29

(10%)

Profit for the quarter

185

249

(26%)

Total Available Liquidity

6,366

5,691

12%

Total Assets

28,328

28,053

1%

Net Debt to Equity

2.1x

2.1x

 

  • Lease revenue for the quarter was US$678 million;
  • Generated US$423 million of net cash from operating activities in the quarter;
  • Delivered US$185 million in profit for the quarter;
  • Finance expense impacted by US$83 million movement in non-cash gains and charges related to debt facility amendment and refinancing activity;
  • At 30 June 2019, Avolon had US$16.6 billion future contracted rental cashflows; and
  • At quarter end, Avolon had US$6.4 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.

2019 Second Quarter | Operating Highlights

  • Owned and managed fleet of 530 aircraft, with total orders and commitments for 393 new technology aircraft;
  • Executed a total of 24 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;
  • Delivered a total of 15 new aircraft to 10 customers and transitioned 11 aircraft to follow-on lessees;
  • Sold 38 aircraft during the quarter including the sale of 34 regional aircraft; and
  • Total of 149 airline customers operating in 60 countries.

2019 Second Quarter | Strategic Highlights

  • Closing of a private offering by Avolon of US$2.5 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$1.8 billion due to significant investor demand;
  • Corporate credit rating upgraded to investment grade by Fitch, Moody’s and S&P. Credit ratings at quarter end were:
    • Fitch BBB- (Stable Outlook)
    • Moody’s Baa3 (Stable Outlook)
    • S&P BBB- (Stable Outlook)
  • Upsized unsecured revolving credit facility by US$488 million bringing the total facility size to over US$2.8 billion;
  • Repriced our senior secured Term Loan B facility to LIBOR plus 1.75% in conjunction with the repayment of US$800 million of the facility; and
  • Ordered 140 CFM LEAP-1A Engines, to power 70 A320neo family aircraft, valued at US$2 billion at list prices announced at 2019 Paris Air Show.

Dómhnal Slattery, Avolon CEO, commented: “The second quarter was headlined by our successful achievement of an Investment Grade rating profile - which was delivered well ahead of the expected timeframe and affirms our long-held view that we have an Investment Grade quality business."

“We continued our strong financial and trading performance from the previous quarter, delivering total revenues of $682 million, a profit of $185 million and selling 38 aircraft. Our strong cashflow generating capabilities and consistent aircraft trading performance, coupled with our capital raising activities, resulted in Avolon ending the quarter with $6.4 billion of total available liquidity.”

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 June 2019 of 923 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