UAE - Dubai Aerospace Enterprise (DAE) has seen its first-quarter profit before exceptional items jump 49% to $69.2 million.

The company’s cash flow from operating activities was $283.8 million and available liquidity $2.6 billion with a liquidity coverage ratio of 309%.

DAE’s net debt-to-equity was 2.47 times and it engaged in open market bond repurchases worth $205 million.

Strong operating environment

Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, said: “Our first quarter 2023 financial results reflect a strong operating environment for airlines, an improving collections and credit profile, and profitable divestment activity. We have successfully integrated the acquisition of SKY Fund I into our platform following the acquisition in the fourth quarter of 2022.

“Our profitability metrics improved substantially during the quarter, and our credit quality and liquidity metrics remained strong. Interest rate volatility allowed us to repurchase $205 million of principal amount of our bonds during the quarter. We have increased our bond repurchase authorisation following additional repurchases in the second quarter.

“DAE Engineering continues to expand its offering and reach new milestones. We commenced over 80 checks in the first quarter of 2023, and announced a number of new maintenance agreements, including with Air Europa and Emirates.”

Adjusted results

DAE’s 2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia.

In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of $576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the three months ended March 31, 2022.

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