DAE Reports Financial Results for Nine-Month Period Ending September 30
Dubai Aerospace Enterprise Reports Strong Financial Performance for the First Nine Months of 2024
DUBAI (ALETIHAD) – Dubai Aerospace Enterprise (DAE) Ltd, a key player in the global aerospace sector, has unveiled its financial results for the nine months ending September 30, 2024. This announcement highlights DAE’s robust operational activities and strategic asset acquisitions that underscore its position in the competitive aviation market.
According to the detailed report, DAE has successfully signed agreements to acquire 23 new aircraft for a total investment of approximately .1 billion. Of these acquisitions, an impressive 91% consists of narrow-body aircraft, out of which 86% are equipped with next-generation technology. In total, the company has acquired 47 aircraft during this period, comprising 11 owned and 36 managed.
In a significant reflection of its proactive management strategy, DAE reported the sale of an equal number of aircraft—47—showcasing a balanced approach to expanding and optimizing its fleet. This includes 16 owned and 31 managed aircraft that have been successfully divested in the marketplace. The company’s commitment to leasing is evident, having signed 103 lease agreements, extensions, and amendments, which includes 85 owned and 18 managed aircraft.
Notably, DAE’s owned portfolio has maintained a remarkable contracted rate of 99.0%. This stability is foundational for the company as it seeks to diversify and solidify its long-term growth strategy. In terms of operational efficiency, DAE Engineering recorded approximately 1,125,000 man-hours booked, delivering a substantial number of checks, totaling 212 for aircraft maintenance and servicing.
Firoz Tarapore, the Chief Executive Officer of DAE, emphasized the company’s impressive financial growth in her comments on the results. “Profit before tax saw a significant uplift of 57%—a 13% increase when excluding exceptional items—on the back of a modest revenue growth of 3%.” This performance translates to pre-tax profitability margins of 23% and a notable pre-tax return-on-equity of 11%. Such figures illustrate not just resilience but an ability to thrive in a challenging economic environment.
Tarapore also highlighted the company’s diligent financial management, stating that DAE maintains exceptionally strong liquidity and capital adequacy metrics. The company concluded the quarter with a robust liquidity position of .0 billion and an outstanding Liquidity Coverage Ratio of 335%. The leverage ratio, measured by net debt-to-equity, showed a commendable improvement from 2.53x at the end of 2023 to 2.45x.
In addition to its current performance, DAE has further reinforced its growth trajectory by announcing agreements to acquire 33 aircraft valued at approximately .6 billion in 2024. The newly consolidated aircraft portfolios have a weighted average age of just 4.4 years and an average remaining lease term of 8.0 years, covering agreements with 17 airlines across 13 countries. This strategic approach focuses primarily on narrow-body aircraft, with 94% of the acquisition by value falling into this category, and 90% classified as next-generation technology aircraft.
However, Tarapore acknowledged the recent uncertainties related to aircraft deliveries, specifically noting challenges stemming from Boeing. Despite these setbacks, DAE has positioned itself favorably within the market, with an order book extending into the second quarter of 2026.
Adding to DAE’s successful narrative, the engineering division reported a remarkable year-on-year revenue increase of 35%, amounting to 1 million, while its profitability surged by an astounding 128%, reaching .6 million. This growth can be attributed in part to ongoing enhancements at its Amman, Jordan facility, where development remains on track to add five new hangar lines by the end of 2024.
In conclusion, Dubai Aerospace Enterprise is not only navigating the complexities of the aerospace industry but thriving through strategic asset management and an unwavering focus on operational excellence. With strong financial results, a solid pipeline of acquisitions, and an ongoing commitment to innovation and efficiency, DAE is poised for continued success in the dynamic aviation market.
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