AerCap's Q4 net income climbs to $65.6m

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AerCap improved its fourth quarter net income to $65.6 million compared with $11.2 million for the year-earlier period.

During the quarter, AerCap purchased six aircraft and entered into a purchase and leaseback agreement for a new Boeing 787-8 aircraft that has yet to be delivered. It also closed financings totalling $4.1 billion, including $3.8 billion relating to the purchase of ILFC.

Basic lease rents were $234.9 million for the quarter, compared with $222.2 million in the same period in 2012, driven primarily by new aircraft purchases.

The lessor’s average lease assets were $8.1 billion, compared with $7.5 billion a year ago. Lease revenue improved to $261.5 million from $233.4 million for the same period in 2012.

Aengus Kelly, chief executive officer of AerCap, says: "2013 was a milestone year for AerCap on many levels. We entered into the ILFC transaction, which provides a great opportunity for the company and its shareholders. Further, among other initiatives, we executed a purchase and leaseback with LATAM for 25 widebody aircraft, which increases the embedded growth in our portfolio.

“Finally, we reported exceptional financial results, with adjusted EPS of $2.64 and adjusted net income of $299.9 million, while maintaining a robust liquidity profile. As we look to 2014, AerCap is well positioned to continue delivering these superior financial returns to our shareholders."

Net gain on the sale of assets for the quarter was $9.6 million, compared with a loss of $47.5 million for the same period in 2012, which included a $59.9 million pre-tax loss on sale of the Aircraft Lease Securitisation (ALS) portfolio.

Net interest margin earned on lease assets, or net spread, was $175.7 million in the quarter compared with $159.9 million for the same period in 2012.

Total owned assets were $9.4 billion at quarter-end, an increase of 9%. In addition the aircraft in the managed portfolio were valued at $2.4 billion.

The utilisation rate was 99.5% for the full year 2013.

The average age of the owned fleet as of was 5.4 years.AerCap executed 197 aircraft transactions during 2013.

The debt to equity ratio was 2.6 to 1 at 31 December, compared with 2.7 to 1 for the same period in 2012.

During the 12-month period, the lessor purchased 38 aircraft with a total value of $1.8 billion. It ended the year with committed future aircraft purchases of $3.5 billion, relating to 44 aircraft.

All committed purchases are placed on long-term leases with an average term of 11.8 years.

AerCap's blended effective tax rate during the full year of 2013 was 8.4%, compared with a blended effective tax rate in 2012 was 5.2%.

The 2012 tax rate was reduced by the loss from the ALS transaction and non-recurring charges from repayment of certain secured loans.

The lessor ended the quarter with 378 aircraft that were owned, on order, under contract, managed or owned by AerDragon, a non-consolidated joint venture.