Dubai Aerospace Enterprise Achieves $310.8 Million Net Profit For Nine Months Ending September 2024

Dubai Aerospace Enterprise (DAE) has announced its financial performance for the nine months ending 30th September 2024. The company achieved a net profit of US$310.8 million, marking a year-on-year increase of $110.2 million or 54.9%. Profit before tax reached $326.6 million, up from $207.5 million in the previous year.

Total revenue for this period was $1.017 billion, reflecting a year-on-year rise of $27.9 million or 2.8%. Operating profit before exceptional items increased by $47.6 million, reaching $512.1 million, which is a growth of 10.2%. Total assets were valued at $12.771 billion, compared to $12,262.5 million in the same timeframe last year.

DAE has entered into agreements to purchase 23 aircraft worth approximately $1.1 billion, with 91% being narrow-body models and 86% featuring next-generation technology. The company acquired a total of 47 aircraft, comprising 11 owned and 36 managed units.

The number of aircraft sold matched acquisitions, totalling 47 units—16 owned and 31 managed. Additionally, DAE signed 103 lease agreements, extensions, and amendments during this period, involving 85 owned and 18 managed aircraft.

Firoz Tarapore, CEO of DAE, stated that "Profit before tax rose by 57 percent (13 percent before exceptional items) on revenue growth of 3 percent, resulting in pre-tax profitability margins of 23 percent and pre-tax return-on-equity of 11 percent." He highlighted the company's strong liquidity position with $4 billion available and a Liquidity Coverage Ratio of 335%.

The leverage ratio improved to a net debt-to-equity ratio of 2.45x from the previous year's end figure of 2.53x in December 2023. This indicates better financial stability for the company.

Engineering Revenue Growth

DAE Engineering saw a significant increase in revenue by 35% year-on-year to reach $131 million. Profitability also surged by an impressive 128%, amounting to $27.6 million during this period.

The expansion project for additional hangar capacity at their Amman facility is progressing as planned. The aim is to have five new hangar lines operational by the end of the year.

The results reflect DAE's strategic focus on expanding its fleet with modern technology while maintaining robust financial health through prudent balance sheet management.

With inputs from WAM