Lessor BOC Aviation Sees Profits Rise As Fleet Hits High Levels – Simple Flying

Most companies in the aviation industry have reported dire numbers for 2020 amid the significant downturn in activity due to the global health crisis. However, unlike many other businesses in the market, BOC Aviation is proud to share its figures. This week, the leasing powerhouse shared that its total revenues and other income were up 4% year-on-year, at $2.054 billion.

BOC Aviation
The company had a busy period. Photo: BOC Aviation

Plenty to shout about

According to the Singapore-based global outfit’s full-year 2020 earnings report, it was a solid year. Along with strong income, it has maintained a healthy liquidity position at $408 million in cash and cash equivalents. It also closed the year with $4.7 billion in undrawn committed credit facilities. These funds will undoubtedly help keep the firm in a secure position as the uncertain climate of the industry continues.

Robert Martin, the managing director and chief executive officer of BOC Aviation, said the following in the earnings report:

“In 2020, BOC Aviation’s core business continued to perform well in the most challenging year in aviation history. Net profit after tax was US$510 million and we will recommend to shareholders to approve a final dividend of 11.73 US cents per share, bringing total dividends for the full year to 35% of net profit after tax.”

Airbus A320 Plane Silhouette
BOC Aviation also announced that it raised $5.5 billion in new financing. Photo: Getty Images

A look at the numbers

The firm’s total revenues and other income exceeded $2 billion for the first time last year, which is up 4% year-on-year. Moreover, its total assets increased to $23.6 billion as of December 31st, 19% higher than the year before. BOC also shared that its “operating cash flows net of interest paid increased 13% for the full year compared with 2019.”

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BOC emphasizes that it has been striving to support its customers by increasing purchase and leaseback activity. Meanwhile, it has been reducing and deferring orders from manufacturers in the short term. Altogether, the business delivered 54 planes to airlines. This factor took its owned and managed fleet to a new high of 398 units.

The company summarized the report with the following:

“BOC Aviation demonstrated resilience in the face of a global pandemic and we positioned the Company for long term earnings growth. The strength of our balance sheet and access to liquidity remain hallmarks of our Company. These place us well to deal with both the challenges that Covid-19 still presents to the world, as well as the recovery that we hope will gain momentum later this year. We would like to thank all of our stakeholders and colleagues for their support in this tumultuous year.”

Strong positioning

Overall, it is positive to report on financial earnings that aren’t about negative results. This has been a rarity over the last year.

Boeing 737 Jet Silhouette
BOC Aviation works with airlines all across the globe. Photo: Getty Images

Notably, several airlines continue to defer or cancel aircraft purchase orders. So, the leasing market may have seen a boost as a result.

What are your thoughts about BOC Aviation’s results? What do you feel contributed most to these figures? Let us know what you think in the comment section.

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