Avation PLC AGM INTERIM MANAGEMENT STATEMENT TRADING UPDATE (4496H)
15 November 2018 - 6:00PM
UK Regulatory
TIDMAVAP
RNS Number : 4496H
Avation PLC
15 November 2018
AVATION PLC
("Avation" or "the Company")
AGM STATEMENT, INTERIM MANAGEMENT STATEMENT AND TRADING
UPDATE
Interim Management Statement and Trading Update
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company advises that the Annual General Meeting being held
today in Singapore includes a Trading Update and Interim Management
Statement. Mr Jeff Chatfield, Executive Chairman, is to provide the
following commentary:
The purpose of this statement is to provide investors with an
update on current operations and concerns the half-year financial
period commencing 1 July 2018.
The Company's business continues to perform satisfactorily and
Avation is expected to report a record half-year profit for the six
months ended 31 December 2018 that significantly exceeds the result
for the comparable half-year period ended 31 December 2017. This is
attributable to increased lease revenue from our fleet and a
trading gain on the sale of a narrow-body aircraft.
Management estimates that lease rental revenues for the
half-year ended 31 December 2018 will increase by 39% to
approximately US$57.8 million (31 December 2017: US$41.7
million).
Operational Update
Since 1 July 2018 Avation has taken delivery of two aircraft
taking Avation's current fleet to 40 aircraft. The fleet additions
comprise an Airbus A220-300 aircraft on lease to airBaltic and an
ATR 72-600 on lease to a new airline customer, Danish Air
Transport. Furthermore, Avation expects to take delivery of two
additional ATR72-600 aircraft before 31 December 2018. The Company
retains 25 options and purchase rights over ATR 72 aircraft for
delivery up to December 2023.
Avation also expects to conclude the sale of one of the five
Airbus A321 narrow-body aircraft currently on lease to VietJet
before 31 December 2018. Investors should be aware that this
aircraft represents one of eight Airbus A321 aircraft in the
current fleet and that narrow-body aircraft now comprise
approximately half of the fleet by value. The sale of this aircraft
indicates that, in the current market environment, the realisable
value of narrow-body aircraft in the fleet exceeds book value, in
this case by more than ten percent.
As at 31 December 2018, it is expected that Avation's fleet will
comprise 41 aircraft, with 3 on order. Avation's customers include
14 airlines in 11 countries. The projected average age of the fleet
will be 3.6 years and the average remaining lease term will be 7.3
years.
Interim Dividend
The Board has declared an interim dividend of 2.00 US cents per
share from current period profits. Details of this interim dividend
will be provided in a separate announcement.
Outlook
Avation will continue to focus on growing the fleet and adding
new airline customers for the remainder of the current financial
year. The Company is currently assessing jet aircraft for
acquisition, in addition to marketing scheduled deliveries of new
ATR 72 turboprop aircraft from our order book.
Executive Chairman Jeff Chatfield said: "The Company has
continued the organic growth and renewal of is fleet. Current
trading is positive with record revenues, materially above that of
the comparable period last year. Given trading conditions, Avation
is pleased to reward the owners of the company with a second
interim dividend for calendar year 2018."
-ENDS-
Enquiries:
Avation
Jeff Chatfield, Executive Chairman T: +65 6252 2077
Note to Editors:
Avation PLC is a commercial passenger aircraft leasing company,
headquartered in Singapore, owning and managing a fleet of jet and
turboprop aircraft which it leases to airlines across the
world.
More information on Avation PLC can be seen at:
www.avation.net
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGMEAKFSFLPPFEF
(END) Dow Jones Newswires
November 15, 2018 02:00 ET (07:00 GMT)
Avation (LSE:AVAP)
Historical Stock Chart
From Apr 2024 to May 2024
Avation (LSE:AVAP)
Historical Stock Chart
From May 2023 to May 2024