Abu Dhabi Aviation group sees profits rise
The Abu Dhabi Aviation Group saw its profits rise 13.35% last year to $75.5 million (AED 277.35 million) up from $66.6 million (AED244.69 million) in 2014. The profit accrued on a Group turnover of AED2.18 billion (593.5 million) which was up 35.39% on the previous year.
Maximus Air Cargo (MAX), the Group’s cargo operator, returned to profit during the year. Its revenues soared 212% last year on 2014 performance to $227.6 million (AED 835.84 million) with a net profit of $28.95 million (AED106.36 million) compared to $6.5 million (AED 23.73 million) in 2014.
Chairman Nadir Al Hammadi said the turnaround in Maximus’ fortunes was due to “the sale of its loss-making A300 fleet and its quick restructuring to eliminate associated costs.”
In a report to his Board of Directors, Al Hammadi said: “During the year, Maximus enjoyed significant revenue from government and military operations” and added: “The positive turnaround was due to significant growth in brokerage activities both government and commercial, and revenue from its successful Antonov operations.”
Abu Dhabi Aviation (ADA), the group’s parent company however saw net profit slip. Though its revenues for 2015 rose 7% on 2014 to stand at $241.87 million (AED 888.41 million) and operating profit rose to $92 million (AED 338 million) from 81.6 million (AED 299.59 million), net profits dipped 6% year-on-year to just short of US $41 million (AED 150.51 million).
Al Hammadi commented: “Revenue increased due to expansion in client contracts. The net profit reduced due to incurring $5.1 million (AED 18.8 million) additional depreciation relating to reducing the residual value and $11.7 million for accounting for additional aircraft impairment to bring their book value in line with market rates. These actions were taken to strengthen the balance sheet and respond to current market conditions.”
Royal Jet, the Group’s award-winning international luxury flight services provider, saw both revenues and net profits fall. It made $ 125.5 million in 2015 compared with $141.6 million) in 2014. Al Hammadi attributed the fall to “lower requirements of medevac customers.” Royal Jet’s net profit tumbled 66% year-on-year to $5.6 million largely due to ownership costs, depreciation of new aircraft and increased finance costs on loans for new aircraft.
Last year Royal Jet took delivery of two Boeing 737-700 BBJ aircraft financed under a US $116.6 million deal struck with Union National Bank. The operator has a fleet replacement and expansion programme aimed at securing a 20 strong fleet by 2020.