Avation reported profit after tax of $8.4 million for the year ended 30 June, reversing a $7.7 million loss the prior year, a $16.1 million swing.
Revenue held flat at $110.1 million, but operating profit climbed 38.4% to $64.3 million from $46.4 million, helped by a smaller unrealised loss on aircraft purchase rights, a gain on the sale of a Boeing 777-300ER, and lower financing costs.
The Singapore-headquartered lessor, whose fleet of 33 aircraft is leased to airlines across 17 countries, said net indebtedness fell 13.3% to $523.7 million, with net debt to total assets down to 52.3% from 54.8%. Cash and bank balances stood at $105.0 million, against $130.0 million a year earlier, while ten aircraft were unencumbered at year-end versus six previously. In November, Avation issued $300 million of 8.5% unsecured notes due 2031 to redeem its outstanding 8.25% notes, a refinancing that triggered a $10.1 million early-redemption loss but strengthened liquidity; S&P subsequently upgraded the group's issuer rating from 'B-' to 'B'.
"The financial year ended 30 June was a significant year of progress for Avation," said Executive Chairman Jeff Chatfield, citing the aircraft leasing portfolio's contribution, the reduced unrealised losses and lower financing costs.
The board declared an interim dividend of 1.5 US cents per share, up 50% from 1.0 cents. During the year, Avation exercised five purchase rights, lifting its firm ATR 72-600 order to 15 aircraft, two of which were delivered and placed with new customers in South Korea and Cambodia. Subsequent to year-end, the company signed six-year leases for two ATR 72-600s with Finnair, and flagged that airBaltic, to which it leases four aircraft, has entered Chapter 11 proceedings.