BOC AVIATION(HK:02588)2024-08-15 09:33Financial Performance - Total operating revenue and other income reached $1.174 billion, an increase of 11% compared to $1.061 billion in the same period last year[2]. - Net profit after tax was $460 million, a significant increase of 76% from $262 million in the first half of 2023[2]. - Earnings per share rose to $0.66, up 76% from $0.38 in the same period last year[2]. - The core net profit for the first half of 2024 was $284 million, reflecting a significant recovery in value from two freighters returned in March 2024[14]. - Total operating revenue and other income for the first half of 2024 reached $1.2 billion, an 11% increase from $1.08 billion in the same period of 2023[15]. - The company reported a net profit of $460 million, with earnings per share of $0.66, marking a historical high compared to $262 million and $0.38 per share in the same period of 2023[14]. - The total comprehensive income for the period was $494,603 thousand, compared to $275,073 thousand in the previous year, marking an increase of approximately 79.8%[89]. Dividends - The board declared an interim dividend of $0.1988 per share, compared to $0.1131 per share in the first half of 2023[2]. - The company declared an interim dividend of $0.1988 per share, representing 30% of net profit, a 76% increase from the previous year's interim dividend of $0.1131[14]. - The total proposed interim dividend for the period ending June 30, 2024, is $0.1988 per share, amounting to $138,000 thousand, an increase from $0.1131 per share ($78,493 thousand) in the same period of 2023[156]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $24.286 billion, remaining stable compared to $24.170 billion as of December 31, 2023[2]. - Total assets increased by 0.5% from $24.2 billion on December 31, 2023, to $24.3 billion on June 30, 2024[33]. - Total liabilities decreased to $18,224,883 thousand as of June 30, 2024, from $18,421,149 thousand as of December 31, 2023[88]. - Total equity rose by 5.4% from $5.7 billion on December 31, 2023, to $6.1 billion on June 30, 2024[44]. - The net deferred tax liabilities amounted to $695,764 thousand as of June 30, 2024, compared to $647,250 thousand as of December 31, 2023, reflecting an increase of approximately 7.5%[153]. Cash Flow and Liquidity - Operating cash flow (excluding interest) for the first half of 2024 was $908 million[2]. - The company maintained strong liquidity with $532 million in cash and cash equivalents, in addition to $4.9 billion in undrawn committed loan facilities[2]. - Cash generated from operating activities for the first half of 2024 was $1,142,292 thousand, compared to $968,588 thousand in the same period of 2023, reflecting an increase of approximately 17.9%[91]. - Available liquidity, including cash and cash equivalents and undrawn credit facilities, totaled $5.5 billion as of June 30, 2024[18]. Aircraft and Fleet Management - The fleet consisted of 680 aircraft with an average age of 4.9 years and an average remaining lease term of 7.9 years[3]. - 18 new aircraft were delivered in the first half of 2024, and 15 owned aircraft were sold[3]. - The company successfully increased aircraft deliveries from 15 in the first half of 2023 to 18 in the first half of 2024, with a total of 55 aircraft planned for delivery in 2024[14]. - The average age of the company's owned fleet is 4.9 years, with a total of 429 aircraft, and a commitment to purchase an additional 14 aircraft, bringing the total order to 219[15]. Financial Expenses and Income - Total costs and expenses decreased by 13.1% to $664.83 million in the first half of 2024, down from $765.48 million in the same period last year[26]. - Financial expenses for the first half of 2024 were $358 million, an increase of 20.6% from $296 million in the first half of 2023, primarily due to rising debt costs[28]. - Financing lease interest income increased by 379.5% to $95.99 million in the first half of 2024, compared to $20.02 million in the same period last year[22]. - Lease rental income for the first half of 2024 was $927.74 million, a decrease of 1.3% from $940.08 million in the first half of 2023[21]. Shareholder Information - As of June 30, 2024, Central Huijin Investment Limited holds 485,807,334 shares, representing 70% of the total issued share capital[59]. - Bank of China also holds 485,807,334 shares, equivalent to 70% of the total issued share capital[59]. - The company has no other individuals or entities holding 5% or more of the shares or related shares as of June 30, 2024[62]. - The directors and CEO hold a total of 1,830,596 shares, representing approximately 0.25% of the total issued share capital[64]. Corporate Governance - The company has fully complied with the corporate governance code during the six-month period ending June 30, 2024[73]. - The audit committee consists of three independent non-executive directors and two non-executive directors, with the chairman being Mr. Dai Deming[72]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[80]. Future Commitments and Plans - Projected cash outflows for aircraft capital expenditures total $11.9 billion, with $1.9 billion expected in the second half of 2024[53]. - The company has committed to purchase 219 aircraft for delivery until the end of 2029, with 79% of its owned fleet consisting of the latest technology aircraft as of June 30, 2024[18]. - The company plans to transition floating rate liabilities to a fallback rate due to the anticipated termination of the synthetic USD LIBOR after September 30, 2024[174].