Wednesday, Apr 30, 2014
Dubai: Dubai Aerospace Enterprise (DAE) is in discussion with a number of banks to raise capital, its Managing Director said on Tuesday.
In a phone interview, Khalifa Al Daboos said the company would not pursue a sukuk in 2014 and instead would raise capital through traditional means.
DAE was almost crippled in the fallout of the global financial crisis as it made quick acquisitions in light of global ambitions. It later cancelled Airbus and Boeing orders for 200 aircraft worth $25 billion, responding to soft global demand for its leasing and maintenance, repair and overhaul (MRO) services.
Al Daboos declined to comment on the company’s current debt structure or whether payments were due in 2014.
DAE released its full year financial results on Tuesday, reporting a net profit of Dh410 million ($111.6 million) for 2013, representing a 310 per cent increase on the Dh29 million reported the previous year.
Reported revenue for the year ending December 31, 2013, was Dh7.7 billion for the year ending December 31, a slight increase on the Dh7.1 billion in 2012.
Al Daboos said in a phone interview that both sides of the company, engineering and capital, performed well in 2013. He, however, pointed out that in 2012 margins were low due to a number of nonrecurring payments.
Al Daboos said the results were audited by “one of the big four [auditors],” however, it did not release a breakdown of its financials. Instead, the largely government backed company released a short statement.
Earlier this year, the company placed its first major deal since the global financial crisis with an order for 40 new aircraft, worth an estimated Dh3.6 billion. Al Daboos said discussions are ongoing to lease the aircraft, with delivery to be spread between 2015 and 2018.
In a previous interview with Gulf News, Al Daboos said that after focusing on restarting the company it now needs to increase its portfolio. Its current net book value of assets is $3.3 billion.
Bullish on 2014, Al Daboos said on Tuesday, “Our first quarter was better than last year’s.”
In 2009, DAE purchased StandardAero Holdings and Landmark Aviation, two companies that service aircraft, off private equity firm Carlyle Group for $1.8 billion. Talks between DAE and British multinational BBA Aviation to merge MRO assets fell apart last year. DAE has since said it will pursue operating and expanding its MRO services on its own.
By Alexander ?Cornwell Staff Reporter
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