Aircraft leasing firm receives profit boost on Russia insurance payout

Insurance proceeds of $258m were in respect of 11 of the 15 aircraft owned by the firm detained in Russia, Boc Aviations says

The directors say the company is continuing to pursue claims in respect of aircraft currently or formerly detained in Russia. Picture: iStock

The Irish arm of aircraft lessor Boc Aviation last year recorded pre-tax profits of $308.19m (€278.8m), mainly due to a $258m insurance payment received concerning 11 aircraft detained in Russia.

New accounts filed by the Dublin-based Boc Aviation (Ireland) Ltd show the pre-tax profit of $308.19m followed a pre-tax loss of $347.3m in the previous year — a positive swing of $655m.

The lessor returned to profit in 2023 as the $258m insurance settlement proceeds from a Russian insurance company contributed to revenues and other income increasing by 14%, from $623.2m to $710.6m.

The directors say insurance proceeds were in respect of 11 of the 15 aircraft owned by the firm detained in Russia.

The insurance settlement concerning the 11 aircraft coincided with the company’s professional fee costs increasing by 194%, from $2.7m to $7.98m. 

The directors say the company is continuing to pursue claims in respect of aircraft currently or formerly detained in Russia.

In the previous year, the losses were due to the firm recording a net-write down of $420.5m concerning the 15 aircraft which had their leases terminated in March 2022 in compliance with sanctions imposed on Russia by several nations arising from its invasion of Ukraine.

In 2023, the company’s leases fee income was down marginally from $383.55m to $380.04m and the directors say “in general, 2023 saw a return to growth across the industry with traffic recovery near to 2019 levels".

At the end of December last, the company had a total of owned and managed aircraft of 120 aircraft, including 88 owned aircraft.

The firm is a subsidiary of a public quoted firm based in Singapore and the company recorded a post-tax profit of $269.68m after incurring a corporation tax charge of $38.5m The pre-tax profit takes account of non-cash depreciation costs of $167.67m and finance costs of $176.78m.

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The firm last year recorded profits of $32.18m from $276.66m realised from the sale of aircraft.

The firm employs nine here and staff costs last year increased by $425,000, or 15%, from $2.73m to $3.16m.

Directors’ pay last year declined from $1.09m to $818,000 which was mainly made up of $638,000 in emoluments.

The firm's cash funds last year declined from $183.64m to $119.65m.

The business paid out no dividend last year and this followed no dividend paid out in 2021.

Total assets increased by 11% to $5.38bn and the firm’s owned and managed aircraft were mainly made up of Boeing and Airbus aircraft.