Net profit soared at Dubai Aerospace Enterprise more than 1,300 per cent last year as the company recovered from its financial woes.
The aircraft leasing company yesterday announced net profits of Dh410 million, compared with just Dh29m in 2012.
The rise in profits was attributable to the absence of one-off items, consisting principally of “litigation items” in its maintenance repair and operations business that negatively affected results in 2012, DAE said.
Revenues increased by 8.3 per cent in 2013 to Dh7.7 billion, from Dh7.1bn in 2012.
DAE’s two divisions – engineering and capital – reported a strong performance last year.
“The DAE Engineering division was restructured in 2013 to create an organisation structure that is more efficient and more responsive to our customers,” said Khalifa AlDaboos, the managing director.
“The DAE Capital division continued its growth trajectory in 2013 by adding high-quality assets on lease to leading airlines. The net book value of the portfolio grew by approximately US$900m during the last two years and currently stands at $3.3bn. We are adding key resources to the team and positioning DAE Capital for successful growth.”
DAE, which came into being in 2006, was created to support Dubai’s growth as an aerospace hub and boost the emirate in the aircraft leasing business.
However, it was forced to scale back its expansion plans after the 2008 financial crisis, cancelling several high-profile orders, with many senior executives leaving in 2011.
DAE in February ordered 40 aircraft from the French-Italian manufacturer ATR in a deal worth $988m. Deliveries are scheduled between 2015-18.
The company took delivery of three Boeing 777-200 freighters in November, which have been placed under long-term lease with Emirates.
DAE was in discussions last year with Britain’s BBA Aviation regarding a potential merger of some of the two firms’ assets. However, talks fell through in September.
The company’s shareholders include Investment Corporation of Dubai, Dubai International Capital, Dubai Silicon Oasis Authority, Istithmar World and Emaar Properties.
jeverington@thenational.ae
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