Dublin-based international aircraft leasing firm, Avolon has reported a 36% year-on-year increase in first quarter profits to nearly €44m.
The company, which listed on the New York Stock Exchange late last year, yesterday said that a strong first three months to the year yielded net income of $49.4m (€43.8m), with total revenue jumping by nearly 30% to $175.7m. Adjusted net income was up by 34% at $61.7m and adjusted earnings per share amounted to 75c, up from 56c.
Last month, Avolon announced the completion of a $675m (€595m) six bank- syndicate funded eight-year debt facility, which will go towards financing a 21 aircraft boost to the firm’s fleet in the coming years.
In yesterday’s results presentation, Avolon’s chief executive, Domhnal Slattery referred to the deal as being a milestone event.
“This debt transaction represents a milestone for the business, and our ability to access this funding level reflects the strength of our business, our credit profile and the quality of our franchise,” he said.
Regarding the quarterly financials, Mr Slattery said the double-digit growth seen in all key financial and operating metrics represented “another strong performance” by the business.
“We have also added over $841m of new commitments in the first quarter, increasing our pipeline for 2016 and 2017 and sustained our trading activity, capitalising on the significant embedded value in our owned fleet.
“The delivery against both of these core business objectives, in the first quarter, reflects the scale of opportunity in the sale-leaseback market, and our ability to consistently trade aircraft,” he said.
Avolon successfully delivered eight aircraft to five airline clients, in five countries, during the three months to the end of March and Mr Slattery added that the outlook is positive.
“Our owned, managed and committed fleet is now 251 aircraft and we have committed growth of approximately $7bn.
“We remain confident in the outlook for the business and the industry, as a whole.
“We believe our balanced business model, underpinned by a disciplined risk management system and prudent balance sheet, will continue to deliver strong growth and drive returns for shareholders,” he said.
The company had undrawn debt, amounting to $920m, as of the end of the first quarter.
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