BOC AVIATION(HK:02588)2022-09-26 23:45Financial Performance - BOC Aviation recorded a core after-tax net profit of $206 million for the first half of 2022, excluding the impact of impairment on 17 aircraft in Russia, while including the impairment, the after-tax net loss was $313 million, or a loss of $0.45 per share [3]. - The company recorded a net loss of $313 million for the first half of 2022, compared to a net profit of $254 million in the same period of 2021, primarily due to an impairment of $804 million related to 17 aircraft in Russia [28]. - The net loss attributable to the company for the current period was $(312,548) thousand, compared to a profit of $253,926 thousand in the same period of 2021, indicating a significant decline [109]. - The company reported a basic and diluted loss per share of $(0.45), compared to earnings of $0.37 per share in the same period of the previous year [108]. - The company incurred a pre-tax loss of $346,865,000 for the first half of 2022, compared to a pre-tax profit of $287,623,000 in the same period of 2021 [114]. Revenue and Income - Total operating revenue and other income increased by 8% to $1.196 billion compared to the first half of 2021 [7]. - Total revenue for the first half of 2022 increased by 8% to $1.196 billion, including $223 million from the termination of leases with Russian airlines [29]. - The company reported a substantial increase in income from terminated leases, which rose to $222,876 thousand from $73,855 thousand, reflecting a growth of 201.5% [108]. - The company reported a decrease in lease rental income by 5% to $877 million and a 19% decline in core lease rental contributions to $280 million due to aircraft being off-lease and losses from Russian aircraft [29]. Assets and Liabilities - Total assets decreased by 4% to $22.8 billion as of June 30, 2022, primarily due to the impairment of aircraft in Russia [7]. - The total liabilities as of June 30, 2022, included $13,699,906 thousand in non-current liabilities, down from $14,865,627 thousand as of December 31, 2021, indicating a decrease of about 7.8% [156]. - The company's total liabilities decreased to $17,892,587 thousand from $18,613,450 thousand, indicating a reduction of 3.9% [111]. - The net book value of aircraft as of June 30, 2022, was $1.2308 billion, a decrease from $1.5667 billion on December 31, 2021 [137]. Cash Flow and Liquidity - Operating cash flow (excluding interest) rose by 29% to $717 million for the first half of 2022 [7]. - The liquidity position remained strong, with $6 billion in cash and available credit lines as of June 30, 2022 [4]. - The company maintained a strong liquidity position with $454 million in cash and short-term deposits as of June 30, 2022 [9]. - Cash generated from operating activities for the first half of 2022 was $946,169,000, an increase from $797,064,000 in the same period of 2021, representing a growth of about 18.7% [114]. Aircraft and Fleet - The fleet consisted of 608 aircraft, with an average remaining lease term of 8.4 years and an average age of 4.1 years for owned aircraft [10]. - The total number of aircraft owned increased from 380 at the end of 2021 to 390 by June 30, 2022, despite delays in deliveries impacting growth [29]. - The company signed its largest aircraft order in history, committing to purchase 80 Airbus A320NEO series aircraft, which will support future operating revenue [4]. - The company has ordered 181 aircraft for delivery through 2029, with 69% of its owned fleet consisting of the latest technology aircraft as of June 30, 2022, up from 66% at the end of 2021 [32]. Dividends - The company declared an interim dividend of $0.0889 per share, representing 30% of core after-tax net profit, consistent with previous years [3]. - The company declared an interim dividend of $0.0889 per share, representing 30% of adjusted net profit of $206 million, reflecting confidence in cash flow and core business performance [28]. - The proposed interim dividend for the period ending June 30, 2022, is $0.0889 per share, totaling $61,698 thousand, compared to $76,202 thousand for the same period in 2021, representing a decrease of approximately 18.9% [175]. Impairment and Expenses - Aircraft impairment rose by 916.2% from $84 million in the first half of 2021 to $851 million in the first half of 2022, mainly due to an impairment of $804 million on 17 aircraft [42]. - Financial asset impairment losses decreased by 90.6% from $63 million in the first half of 2021 to $6 million in the first half of 2022, as the aviation industry began to recover from the COVID-19 pandemic [45]. - Total costs and expenses decreased from $820 million in the first half of 2021 to $739 million in the first half of 2022, primarily due to reduced financial asset impairment losses and decreased aircraft impairment [40]. Corporate Governance and Compliance - The company has fully complied with the corporate governance code as of June 30, 2022 [94]. - The audit committee consists of three independent non-executive directors and two non-executive directors, ensuring oversight of financial reporting and internal controls [93]. - The financial statements were prepared in accordance with International Accounting Standard 34 and Singapore Financial Reporting Standards (International) 1-34 [106]. Shareholder Information - As of June 30, 2022, Central Huijin Investment Ltd. holds 70% of the company's issued share capital, with China Bank and BOC Investment also holding the same percentage [81]. - The company reported a total of 694,010 thousand shares issued and fully paid as of June 30, 2022, consistent with the same number as of December 31, 2021 [171]. - The company has granted 1,178,077 restricted stock units to directors and key executives as of June 30, 2022, compared to 746,615 units as of December 31, 2021 [188].