DUBLIN--(BUSINESS WIRE)--Avolon, a leading global aviation finance company, announces results for the full year, 2023.
2023 | FINANCIAL HIGHLIGHTS
Income Statement
|
Three Months Ended
|
|
Year Ended
|
||||||
|
2023 |
2022 |
$ Change |
% Change |
|
2023 |
2022 |
$ Change |
% Change |
Lease revenue |
674 |
594 |
80 |
+13% |
|
2,473 |
2,337 |
136 |
+6% |
Operating cashflow |
444 |
304 |
140 |
+46% |
|
1,751 |
1,207 |
544 |
+45% |
Adjusted EBITDA* |
684 |
585 |
99 |
+17% |
|
2,510 |
2,375 |
135 |
+6% |
Net income |
110 |
41 |
69 |
+168% |
|
339 |
9 |
330 |
|
Balance Sheet (US$M) |
December 31,
|
December 31,
|
$ Change |
% Change |
Total available liquidity |
7,228 |
5,567 |
1,661 |
+30% |
Total assets |
30,513 |
30,796 |
(283) |
(1%) |
Secured debt / Total assets |
23% |
22% |
1% |
N/A |
Net debt to Equity |
2.2x |
2.3x |
(0.1x) |
N/A |
- Net income of US$110 million for the fourth quarter, and US$339 million for the full year, representing a US$330 million increase on FY22 (a 34% increase excluding impact of Russia in FY22);
- Delivered record operating cashflow of US$1.75 billion, up 45% on FY22;
- 6% increase in lease revenue to US$2.5 billion;
- Raised US$4.9 billion of debt across both the public and private markets;
- Total available liquidity at year end of US$7.2 billion, including US$690 million of unrestricted cash and US$6.2 billion of undrawn debt facilities;
- Post quarter end, issued US$1.15 billion of senior unsecured notes maturing 2029;
- Net debt to equity of 2.2 times, a secured debt to total assets ratio of 23% and over US$16 billion of unencumbered assets; and,
- Investment grade ratings affirmed by Moody’s, S&P, Fitch and KBRA with Fitch moving Avolon’s BBB- rating to Positive outlook.
*Adjusted EBITDA is a non-GAAP measure. For reconciliation, see Earnings Presentation posted to www.investors.avolon.aero |
2023 | BUSINESS HIGHLIGHTS
- Ordered 200 new aircraft including 100 A321neo, 80 737MAX and 20 A330neo;
- Underwrote US$4 billion of new volume through the sale and leaseback market;
- Executed 147 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
- Delivered 43 new aircraft and transitioned 30 aircraft to 22 customers;
- Sold 31 aircraft and ended the year with 25 aircraft agreed for sale;
- Added 10 new customers, giving a total of 146 airline customers operating in 65 countries;
- Ended the year with an owned, managed and committed fleet of 1,035 aircraft, including orders and commitments for 458 fuel-efficient, new technology aircraft; and,
- Affirmed Sustainalytics rating at 16/’Low Risk’ and supported a feasibility study into the production of Sustainable Aviation Fuel in Ireland in partnership with Boeing and ORIX Aviation. Avolon’s Sustainability Report for 2023 is also published today and can be accessed here.
Andy Cronin, Avolon CEO, commented:
“Robust demand for aircraft, combined with continued undersupply, provided a tailwind to placing our orderbook and used aircraft at attractive lease rates, which will drive future profitability. Record operating cashflow and a sharp increase in net income are testament to our success in 2023.
The orders made for 200 new technology aircraft during the year strengthen our delivery pipeline and provide embedded growth to support our customers into the next decade. Against an attractive market backdrop, Avolon has an industry-leading platform and robust balance sheet to drive future earnings growth.”
About Avolon
Avolon is a leading global aviation finance company connecting capital with customers to drive the transformation of aviation and the economic and social benefits of global travel. We pride ourselves on our deep customer relationships, our collaborative tam approach, and our fast execution. We invest with a long-term perspective, diversifying risk and managing capital efficiently to maintain our strong balance sheet. Working with 146 airlines in 65 countries, Avolon has an owned, managed, and committed fleet of 1,035 aircraft, as of 31 December 2023. www.avolon.aero