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(Alliance News) - DP Aircraft I Ltd on Wednesday reported higher annual profit thanks to slightly lower expenses and finance costs.
The aircraft leasing company reported a USD23.2 million pretax profit for 2019, an 8.4% rise from the previous year's USD21.4 million profit.
Revenue was flat at USD57.4 million, while total expenses fell to USD24.8 million from USD25.6 million. Coupled with a shrink in net finance costs to USD9.3 million from USD10.4 million, these lower expenses resulted in an improved profit.
Net asset value per share as at December 31 was USD1.03041, up from USD1.02169 year-on-year.
In the midst of the Covid-19 pandemic, DP Aircraft has suspended its dividends until further notice. From January 2019 until January 2020, the firm declared five dividends of USD0.0225 per share.
Chair Jon Bridel said: "It is difficult to comment on the 2019 trading year without starting from the momentous changes to the airline market following the outbreak of the Covid-19 virus pandemic in the first quarter of 2020.
"The outlook for the airline industry for 2020 with a 2019 lens remained positive, however the airline industry as a whole has been substantially impacted by the outbreak of the Covid-19 virus. The extent of the international governmental response has led to the virtual suspension of international travel for as yet an undefined period. This has and will put substantial pressure on airlines ability to fund near term operations. The extent and the duration of the down turn remains difficult to assess. With revenues effectively stopped there is substantial pressure on airlines to review and challenge their current operational financing - this includes our lessees."
DP Aircraft I is now focused on preserving financial stability in the long term, though Bridel said "the challenges facing the company are significant".
By Anna Farley; annafarley@alliancenews.com
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