Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Avation PLC (FRA:9K0) reported a substantial increase in total income to $55.4 million for the half-year, reflecting strong financial performance.
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The company’s operating profit increased by 18.8 million, highlighting improved profitability.
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Avation PLC (FRA:9K0) achieved 100% fleet utilization, contributing to strong cash generation and operating performance.
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The company successfully reduced net indebtedness by $45.3 million, demonstrating effective debt management.
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Avation PLC (FRA:9K0) is well-positioned for growth with an ATR order book and purchase rights extending to 2034, providing opportunities for future expansion.
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The average cost of debt increased to 6.6%, which could impact future profitability.
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Avation PLC (FRA:9K0) reported a $15.4 million unrealized loss on the revaluation of aircraft purchase rights and deposits.
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The company’s share price has not reacted positively despite strong financial metrics, indicating potential market concerns.
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There are still $13 million in trade receivables from the COVID period, although the company is confident in recovering these.
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The upcoming maturity of $331 million in unsecured notes by October 2026 presents a refinancing challenge.
Q: Could you describe the ideal joint venture partner for future ATR orders? Do you prefer a financial partner or one with operational strategic interest? A: We are open to both financial and strategic partners for ATR orders. A good partner could facilitate financing and growth. While it’s not mandatory, we are considering it due to inbound interest. (Respondent: Unidentified_3)
Q: How does the lease yield on the new plane with Etihad compare to the current fleet? A: The lease yield on the new plane with Etihad is exactly the same as our current fleet, providing growth in revenue and asset base. (Respondent: Unidentified_3)
Q: Are there still pending unpaid lease payments from airlines from the COVID days? Have you written them off? A: We have been successful in recovering most debts accrued during COVID. We are down to about $13 million in receivables as of December 31, and we are confident in recovering them. (Respondent: Unidentified_4)
Q: Why isn’t the share price reacting well despite positive metrics? A: We are enhancing investor relations and considering listing shares on the top tier of the London Stock Exchange to improve visibility and share performance. (Respondent: Unidentified_3)
