BOC Aviation H1 profit up 5%, trims gearing

BOC Aviation's first-half profit after tax rose 5 per cent to US$171.5 million while gross debt to equity improved slightly to 3.9 times from 4.0 times, the aircraft leasing company announced.

Revenue for the six months to June increased by 2.9 per cent to US$535.1 million. Costs and expenses shrank by 0.8 per cent as impairment on aircraft was cut to US$13.6 million from US$38.8 million a year earlier.

Total equity increased to US$2.3 billion as revenue reserve increased by 11.5 per cent to US$1.7 billion. Gross debt rose to US$8.8 billion from US$8.4 billion.

The company noted that its credit rating was upgraded to "A-" by Standard & Poor's during the reporting period, and that its average annual cost of debt is currently at 2 per cent.

BOC Aviation added two new airline customers during the period, increasing its reach to 61 airlines in 30 countries. Its fleet of 256 aircraft is currently fully utilised, and it has 195 aircraft on order with deliveries scheduled through 2021.