BOC AVIATION LIMITED HSBC Global Investment Summit
10 APRIL 2024
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2
2023: A Year of Record Performance
Key Indicators
2023
US$ million
2022
US$ million
2023 vs 2022
Variance
Total revenues and other income | ||
2,461 | ||
Profit before tax | 861 | |
Net profit after tax | 764 | |
Earnings per share (US$) | 1.10 |
2,307
29
20
0.03
7%
2,818%
3,708%
3,708%
30th year of unbroken profitability
3
Strong Improvement in Net Profit After Tax
217 | ||
million | 764 | |
US$ | ||
527 | 547 | |
20 |
Reported net profit | Core net profit after1 | Core net profit after 1 | Insurance recovery | Reported net profit | ||||
after tax | tax | tax | (net of tax) | after tax | ||||
2022 | 2023 | |||||||
Record performance driven by growth in underlying business and success in Russia-related recoveries
Note:
1. Excludes the impact of write-downs and recoveries related to aircraft in Russia.
4
Robust Balance Sheet and Liquidity
Key Indicators | 31 December 2023 | |
Total assets (US$ billion) | ||
24.2 | ||
Total available liquidity (US$ billion) | 5.6 | |
Total equity (US$ billion) | 5.7 | |
Net assets per share (US$) | 8.28 | |
Gross debt to equity (times) | 2.9 | |
31 December 2022
22.1
5.3
5.2
7.50
2.9
Variance
10%
6%
11%
11%
Stable
Total assets grew at the fastest pace since 2020
5
Highest Dividend Since IPO
US$
0.3541 | 0.3852 | ||||||||
0.2958 | 0.3129 | 0.2831 | |||||||
1 | |||||||||
0.2571 | 0.2659 | ||||||||
0.27212 | |||||||||
0.1845 | 0.2153 | ||||||||
0.1800 | 0.1920 | 0.1173 | 0.1733 | ||||||
0.1770 | |||||||||
0.1190 | |||||||||
0.1038 | 0.1284 | 0.1388 | 0.1398 | 0.1098 | 0.0889 | 0.1131 | |||
0.061 | |||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
Interim dividend | Final dividend | ||||||||
Total dividend per share of US$0.3852 in 2023; annual payout ratio consistent at 35% of NPAT
Notes:
- Represents a payout ratio of 35% of core net profit after tax
- The recommended final dividend of US$0.2721 per share, pending approval at the AGM, will be payable to shareholders registered at the close of business on the record date, being 7 June 2024
6
Continued Improvement in Key Metrics
Total revenues
US$ million
2,183 | 2,307 | 2,461 |
2021 | 2022 | 2023 |
Operating cash flow net of interest1
US$ million
1,517 | 1,643 | |
1,327 | ||
2021 | 2022 | 2023 |
Profit before tax
US$ million
861 | ||
639 | ||
29 | ||
2021 | 2022 | 2023 |
Net profit after tax
US$ million | 764 | |
561 | ||
20 | ||
2021 | 2022 | 2023 |
Strong rebound in earnings from growth in underlying business and recoveries from aircraft in Russia
Note:
1. Calculated as net cash flow from operating activities less finance expenses paid
7
Improving Operating Lease Yields
Lease rate factor1
9.7% | 9.2% | 10.0% |
2021 | 2022 | 2023 |
Cost of debt2
4.1% | ||
2.9% | 3.1% | |
2021 | 2022 | 2023 |
Net lease yield3
7.6% | ||
7.0% | 7.1% | |
2021 | 2022 | 2023 |
Notes:
- Calculated as operating lease rental income divided by average aircraft net book value and multiplied by 100%
- Calculated as the sum of finance expenses and capitalised interest, divided by average total indebtedness. Total indebtedness represents loans and borrowings before adjustments for deferred debt issue costs, fair values, revaluations and discounts/premiums to medium term notes
- Calculated as operating lease rental income less finance expenses apportioned to operating lease rental income, divided by average aircraft net book value
8
How We Invest
Global
Financial
Crisis
Number of aircraft delivered, purchased and sold
European | Opportunistic PLB |
Crisis | acquisitions in the |
down cycle | |
Covid-19
19 | 41 | 45 | |||||||||||||||||||||
24 | 13 | 16 | |||||||||||||||||||||
45 | 27 | (3) | 9 | 14 | 41 | 22 | |||||||||||||||||
16 | 7 | 4 | |||||||||||||||||||||
22 | 18 | 17 | 6 | 12 | 46 | ||||||||||||||||||
14 | 31 | 21 | 43 | 29 | |||||||||||||||||||
5 | 58 | 61 | 50 | 17 | |||||||||||||||||||
(5) | 12 | 6 | 5 | 41 | 44 | 48 | |||||||||||||||||
27 | 31 | ||||||||||||||||||||||
17 | 22 | 22 | 23 | 17 | 21 | ||||||||||||||||||
7 | 14 | 11 | |||||||||||||||||||||
(12) | (12) | (3) | (10) | (10) | (6) | (21) | (30) | (28) | (12) | (23) | (17) | (20) | |||||||||||
(33) | (43) | (37) | (34) | (1) | |||||||||||||||||||
(7) | (5) | (2) | |||||||||||||||||||||
(3) | |||||||||||||||||||||||
(5) | (12) | ||||||||||||||||||||||
(11) | |||||||||||||||||||||||
(10) | |||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||
Low liquidity | |||||||||||||||||||||||
High liquidity | Low liquidity | High liquidity | Low liquidity | ||||||||||||||||||||
From orderbook | From PLB | Owned aircraft sold | Acquired by airline lessee at delivery | ||||||||||||||||||||
2023 saw largest fleet growth in our history
9
100% of Orderbook Comprises Latest Technology Aircraft
Our aircraft portfolio
Aircraft type | Owned aircraft | Managed aircraft | Aircraft on order | Total |
Airbus A220 family | 18 | 0 | 0 | 18 |
Airbus A320CEO family | 83 | 14 | 0 | 97 |
Airbus A320NEO family | 122 | 0 | 124 | 246 |
Airbus A330CEO family | 8 | 1 | 0 | 9 |
Airbus A330NEO family | 6 | 0 | 0 | 6 |
Airbus A350 family | 9 | 0 | 0 | 9 |
Boeing 737NG family | 61 | 13 | 0 | 74 |
Boeing 737-8/9 | 60 | 0 | 93 | 153 |
Boeing 777-300ER | 27 | 4 | 0 | 31 |
Boeing 787 family | 27 | 1 | 7 | 35 |
Freighters | 5 | 1 | 0 | 6 |
Total
426
34
224
684
77% of existing fleet is latest technology aircraft1
All data as at 31 December 2023
Note:
1. Based on net book value and including aircraft subject to finance leases
10
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BOC Aviation Ltd. published this content on 10 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 02:04:03 UTC.
