Profits at aircraft lessor SMBC Aviation Capital hit $530 million

Irish company’s revenues pass $1 billion for the first time

Profits at Irish aircraft lessor SMBC Aviation Capital grew 22 per cent to $530 million (€480 million) last year.
Profits at Irish aircraft lessor SMBC Aviation Capital grew 22 per cent to $530 million (€480 million) last year.

Profits at Irish aircraft lessor SMBC Aviation Capital grew 22 per cent to $530 million (€480 million) last year.

SMBC said that group revenues rose 15 per cent in 2015 to $1.05 billion from $906 million the previous year.

The growth drove revenues past the $1 billion mark for the first time in the company’s history.

Operating profits gew 22 per cent to $530 million last year from $433 million in 2014.

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SMBC leases aircraft to more than 100 airlines in 43 countries in Europe, Asia and the Americas.

Japanese companies SMFG and Sumitomo Corporation own the Irish group, which is headquartered in Dublin.

The 297 aircraft it owns and the 145 that it manages were worth more than $10.2 billion at the end of 2015.

The group also confirmed on Wednesday that it closed the sale of a $500 million bond issued through a subsidiary, SMBC Aviation Capital Ltd DAC.

The bond has an interest rate of 2.65 per cent and is due for repayment in 2021. SMBC Aviation Capital has fully and unconditionally guaranteed it.

The company intends using the money raised for general purposes, including buying aircraft and paying off existing debt.

Its bond issue follows a $600 million facility agreed with a consortium of five major banks during 2015.

SMBC ordered 10 Boeing 737 Max 8s - a new version of the craft aimed at low-cost airlines - during 2015.

This brought its order book to 205, made up of 90 Boeing 737 Max 8s, 110 Airbus A320neos and five Airbus 321ceo aircraft.

It delivered 57 craft to airline customers during the year, including its first Boeing Dreamliner.

Commenting on the results, chief executive Peter Barrett said that the success of its bond issue demonstrates the market's confidence in SMBC's growth plans.

“We have continued to expand our business across the world, particularly in Asia, which is a testament to both the strength of our strategy as well as our position as a global leader in this sector,” he said.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas