BOC Aviation reported net profit after tax (NPAT) of US$764 million for 2023, exceeding 2019’s previous record of US$702 million. The improvement reflected underlying growth across the business, combined with insurance settlements in respect of aircraft in Russia.
The company said its balance sheet grew by 10% during 2023 to more than US$24 billion, reflecting investment in new aircraft. In 2023, it committed to acquire 95 aircraft and ended the year with record total committed capital expenditure of US$12 billion and an orderbook of 224 aircraft.
The Board of Directors has recommended a distribution of US$0.2721 per share by way of final dividend, taking total dividend for the year to US$0.38521. This represents 35% of our 2023 NPAT and will be the highest dividend paid in our company’s history.
“We are delighted to report record earnings as we celebrate our 30th anniversary,” said Steven Townend, Chief Executive Officer and Managing Director. “We achieved record fleet growth in 2023, which also drove our revenues, cashflows and asset values to record highs. With passenger travel growth expected to remain firm, we are well placed to leverage continued strong demand for the modern aircraft that comprise our fleet and orderbook.”
Financial Highlights
- Total revenues and other income rose 7% year-on-year, to US$2.5 billion
- Record net profit after tax of US$764 million compared with US$20 million in 2022
- Earnings per share of US$1.10 and net assets per share of US$8.28
- Operating cash flow net of interest rose 8% to US$1.6 billion
- Total assets of US$24.2 billion at 31 December 2023, up 10% on 2022
- Raised US$4.1 billion of new debt financing comprising US$2.5 billion of loans and US$1.7 billion of bonds
- Maintained strong liquidity of US$5.6 billion, comprising US$392 million in cash and cash equivalents and US$5.2 billion in undrawn committed credit facilities at 31 December 2023.
Portfolio and Operational Highlights
As at 31 December 2023, BOC Aviation had:
- A total fleet of 684 aircraft owned, managed and on order, with an average aircraft age of 4.6 years and an average remaining lease term of 8.1 years for the 426 owned aircraft fleet, weighted by net book value2
- A customer base of 91 airlines in 45 countries and regions in the owned and managed portfolios
- Executed a record 348 transactions in 2023, including: Commitments to purchase 95 aircraft
- Delivery of 65 aircraft (excluding two acquired by an airline customer on delivery)
- Sale of 20 aircraft and one engine
- 142 lease commitments
- An orderbook of 224 aircraft
- Recorded aircraft utilisation of 99% for the owned portfolio for the year ended 31 December 2023.
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