Nordic Aviation Capital posts full-year results

Regional aircraft lessor Nordic Aviation Capital (NAC), has posted its financial results for the 12-month period ending June 30, 2020. 2019/2020 was an extremely challenging year for the business and while NAC posted its strongest ever first-half financial performance, it was followed by its most challenging last quarter to date on the back of the COVID-19 pandemic.

NAC reported that the business performance result was close to double the result for the same period in 2018/19. The company priced a U.S. private placement of US$859 million in February 202. NAC recorded a 22% increase in placements and extensions compared to last year including the execution of 65 lease extensions with existing customers. The company increased lease revenue by 2% to US$760 million and reported EBITDA of US$686 million. NAC generated cash flow from operations of US$377 million over the year and recorded US$490 million in unrestricted cash, total assets of US$8.1 billion and total debt of US$5.7 billion.

Due to the significant impact of COVID-19 on the business, material impairments of goodwill and other intangible assets led to a loss of US$639 million for the year. At the financial year-end, many of NAC’s customers had entered into short-term rental deferral agreements and/or were in arrears on their payment obligations. As a result, trade receivables and expected credit losses thereon have increased. Despite this, the cash collection rate on revenue during the financial year was 77%.

The comany’s owned and managed fleet comprized of 490 aircraft with commitments for another 71 aircraft taking the fleet to 561 aircraft.

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