NAC continues its positive trend.

Wednesday 25th September 2013

Nordic Aviation Capital, the leading aircraft lessor's profit from ordinary operating activities increased 63% in 2012/13, from USD 125.6m to USD 204.4m. The operating profit, including aircraft value adjustments, increased 51%, from USD 95.0m to USD 143.7m. These results are in line with company expectations.

The 2012/13 annual accounts, which ended 30.06.13 showed an increase in revenues of 51% up from USD278.9m to USD421.9m and an increase of 16% in post-tax earnings, which rose to USD65.9m.

These improved results are attributable to two main factors, the company's stable market position and a steadily increasing liquidity, which provides a freedom to act quickly and with flexibility. Cash resources have increased by USD 53.7m and stand at USD 125.6m.

"We are quite satisfied with the development of our business, especially with the good international relations that we have established with a handful of foreign banks this year, among others in the USA, where we have raised a 5-year unsecured loan of USD 230m," says CEO, Kim Graven-Nielsen.

"We reinvest all earnings in the company and endeavour to obtain 100% financing for investments in new assets, which we are able to do because the company is well consolidated and has a positive cash flow and substantial cash reserves," says COB, Martin Møller, in a comment on the annual report.

Largest contract ever !

At the end June 2013, NAC had a portfolio of 182 aircraft, and the fleet is expected to grow to more than 200 aircraft during the current financial year. NAC has moved further ahead of competitors in the large turboprop aircraft sector and re-enforced its position as the world's largest lessor of turboprop aircraft. This position will be further strengthened with the agreement to purchase up to 90 new aircraft from Regional Aircraft supplier ATR.

"This development is exciting. In June 2013, we signed the company's largest contract ever with ATR, for the delivery of 90 factory new ATR aircraft, an investment of several billions. Delivery will take place up until 2021, and many of the 90 aircraft are already part of new lease agreements with customers," says Martin Møller.

NAC is a fully International business with 90 employees worldwide; 50 work in the company headquarters located in Billund, Denmark, and 40 are based in regional offices located in Singapore, Ireland and North America. During the financial year 2012/13, the company increased its global workforce by hiring 20 new professionals across all its regional locations.

A future with a strong focus on growth:

NAC's immediate future is to continue on the current growth trend, which is strongly underpinned by future deliveries of aircraft already contracted for during the 2012/13 financial year. Growth through globalization of the company will continue to be a strong focus, with the aim of securing and growing the company's dominant position in the regional turboprop sector worldwide.

"The demand for air transport will continue to grow worldwide by approx. 5% a year, and with an even faster growth regionally. With relatively high oil prices and a high growth on several continents, we anticipate a continued positive development of the regional market, especially in Asia and South America. But also the European markets show signs of increased activities during the past months," says Kim Graven-Nielsen.

"We are continuing the strategy we set several years ago. We are very pleased with current developments and the outlook for the future," says Martin Møller.