DP Aircraft 1 releases its final report for the year ended 31 December 2017

DP Aircraft 1 releases its final report for the year ended 31 December 2017 – DP Aircraft 1 (DPA)’s investment objective is to obtain income returns and a capital return for its shareholders by acquiring, leasing and then, when the Board considers it is appropriate, selling aircraft.

DP Aircraft I Limited owns two Boeing 787-8 aircraft, manufacturer serial number (MSN) 35304 and MSN 35305, both on a long term lease with Norwegian Air Shuttle ASA as well as two Boeing 787-8 aircraft, MSN 35320 and MSN 36110, both on a long term lease with Thai Airways International PCL.

Highlights:

• Dividends totalling US$0.09 per Share were paid. This is unchanged from 2016 and is in line with their dividend target
• Profit for the year was US$ 18,899,551 with earnings per share of US$ 0.09028 (2016: US$ 0.09046)
• The company’s NAV was US$ 1.00937 per Share (excl. Swap liabilities).  At the close of 2016, it was US$ 1.00927

Chairman’s outlook

“The outlook for the airline industry for 2018 is positive and the International Air Transport Association expects 2018 to be the fourth year in a row of sustainable global airline profits. During 2017, travel demand grew, catalysed by economic recovery in emerging markets, increased demand for imports and exports in developing markets as well as lower airfares resulting from low fuel prices during 2017. It is expected that costs will challenge profitability in 2018, although global revenues are set to increase compared to 2017. The Asset Manager’s report that follows provides a detailed overview of 2017 and the expectations for 2018.

The Company has noted the implementation of substantial growth plans for NAS and its recent fall in operating profits, partly driven by the cost of the expansion. NAS is confident that this strategy will deliver improved financial performance and the Company is monitoring progress with the implementation of the strategy together with the Asset Manager who is liaising with the airline periodically. NAS recently had a successful placement of new equity and its share price has improved following interest shown by IAG who have purchased a 4.6% equity stake in NAS.”

DPA : DP Aircraft 1 releases its final report for the year ended 31 December 2017