Dubai Aerospace Enterprise (DAE), one of the world's biggest plane lessors, posted a lower nine-month profit this year but said it is well positioned to manage the impact of Covid-19 due to its strong balance sheet.
Profit for the period fell to $90.5 million in the first nine months of 2021, from $167.3m in the same period last year, DAE said. Adjusted profit for the period stood at $128.8m, after adding back one-off debt redemption costs.
Total revenue for the first nine months dropped to $925.3m, from $984.1m in the same period in 2020, as net lease revenue fell 8.7 per cent year-on-year.
"Our financial results for the first nine months of 2021 demonstrate our continued focus in the leasing division on investing in new technology, fuel-efficient narrow body aircraft, sales of portfolio aircraft in the secondary market and extending further relief to our airline customers," Firoz Tarapore, chief executive of DAE, said.
The outlook for plane lessors has been brightening as confidence to travel returns gradually. The global commercial aircraft leasing market is projected to grow at a compound annual growth rate of 4.9 per cent between 2020 and 2027 despite the Covid-19 pandemic, according to a report by ResearchandMarkets.com.
DAE said the gradual start of airlines' recovery helped to improve its collection rate, or the sum of all cash collected from lease rentals as a percentage of the total contracted receivables due for the period after factoring in any lease amendment or deferral agreements, to 89 per cent as of September 30.
"Many airlines are beginning to return to normal operations which has helped to improve our collection rate to 89 per cent for the period and increase our operating cashflow by 33 per cent to $800m in the first nine months of 2021," Mr Tarapore said. "Approximately seven billion vaccine doses have been administered globally, but the deployment is uneven across jurisdictions, impacting recovery of long-haul air traffic."
DAE offered relief packages to 40 airline customers as of September 30, up from 33 customer as of December 31, 2020. This was in the form of rent deferrals, loans to airlines or other leases amendments, DAE said.
The total value of rent deferrals and loans to airlines is $216.6m or 18.7 per cent of Trailing Twelve Months (TTM) lease revenue, it said. Of the total, $213.4m has been incurred and $3.2m relates to future rental.
In addition, DAE have entered into various lease amendments mainly involving near-term relief in exchange for lease extensions and other lease value enhancements, with the total value of these amendments at $172.6m.
"If the impact of Covid-19 is prolonged, the amounts due from our airline customers and associated loss allowance may increase in future periods," DAE said in its financial statement. "However, we expect the global travel industry to recover, and we are well positioned to manage the impact of Covid-19 on our business due to the strength of our balance sheet and liquidity position."
It holds approximately $484m in the form of cash or letters of credit. It also holds maintenance reserves of $1,147.1m. In addition, it has access to $3.4 billion of available liquidity to support the on-going operation of the group as needed.
"We continue to monitor air traffic recovery trends and maintain a strong and healthy balance sheet and exceptional liquidity to assist our clients and grow our franchise," Mr Tarapore said.
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Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
UAE currency: the story behind the money in your pockets
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Scoreline
UAE 2-1 Saudi Arabia
UAE Mabkhout 21’, Khalil 59’
Saudi Al Abed (pen) 20’
Man of the match Ahmed Khalil (UAE)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Manchester United v Liverpool
Premier League, kick off 7.30pm (UAE)
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Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
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