Business World

Sunday 18 August 2019

Profit at SMBC Aviation Capital tops €143m in six months

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Ellie Donnelly

Ellie Donnelly

Profit before tax at Dublin-headquartered SMBC Aviation Capital rose 3.1pc year-on-year to $167m (€143m) in the six months to 30 September.

During the six month period the aircraft leasing company posted revenue and other income of $566m (€485m).

The performance was driven by "significant" activity in the company’s trading business, with the company closing 13 sales during the period.

In addition, the company has contracts and letters of intent for sales of a further 38 aircraft, including a 20 aircraft deal with Aircastle.

Overall aircraft assets at the company were worth $10.5bn, comprising of 278 owned and 174 managed aircraft.

During the period the company, which is owned and supported by a consortium of leading Japanese institutions including Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Finance and Leasing Company and Sumitomo Corporation, took delivery of seven new aircraft, six of which are newest technology A320neo and A350 aircraft.

In July this year SMBC Aviation raised $500 in new funding through bond issue.

Meanwhile last week the company announced a capital injection from its shareholders of up to $1bn by March 2019 to fund its future expansion plans.

"We are pleased with our performance in the first half of the year. Our portfolio valued at $10.5bn has been the primary driver of the strong result in our core operating lease business.

We have continued our transition to new technology aircraft, with the majority of deliveries this year being the newest A320neo and A350 aircraft," Peter Barrett, CEO of SMBC Aviation Capital, said.

In addition to the company’s Dublin headquarters, SMBC Aviation has offices in China, France, Hong Kong, Japan, the Netherlands, Singapore and the United States.

Ireland is a leading exporter in aircraft leasing, with around half of the world's leased planes owned from Ireland.

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