BOC Aviation (2588) H2 2023 earnings summary

Executive summary

• Record 2023 NPAT of US$764 million; 30th consecutive year of profitability, with results reflecting underlying business growth and Russia-related aircraft recoveries.

• Total assets reached US$24.2 billion, and available liquidity was US$5.6 billion at 31 December 2023.

Financial highlights

• Revenue and other income rose 7% YoY to US$2.461 billion; profit before tax was US$861 million and NPAT was US$764 million.

• Operating cash flow net of interest reached a record US$1.643 billion in 2023; collections were 101.3% of amounts due.

• Adjusted for Russia-related write-downs and recoveries, core NPAT was US$527 million in 2023 versus US$547 million in 2022.

Outlook and guidance

• Committed capex totaled US$12 billion, including 95 additional aircraft ordered in 2023; 10 aircraft were added to the 2024 delivery schedule early in 2024.

• Industry outlook cited global passenger traffic at 2019 levels and airline profitability expected to rise 10% in 2024; estimated aircraft deliveries were valued at US$100 billion.

• US$5.6 billion of available liquidity and a 224-aircraft orderbook support planned fleet and balance-sheet growth.