Irish aviation lessor Avolon, which is being acquired by Chinese company Bohai Leasing, has said net income rose 33 per cent in the third quarter to $58 million from $43.8 million for the same period a year earlier.
The company said net income for the nine months ended September 30th meanwhile was 56.7 per cent or $59.1 million higher at $163 million as against $104.2 million a year earlier.
Adjusted third quarter earnings increased 49 per cent to $76 million from $50.9 million.
Avolon attributed the rise in net income to the acquisition of additional aircraft, an increase in the net gain on disposal of flight equipment and a decrease in the weighted average interest of the company.
Third quarter revenue reached $201.9 million as against $164 million for the same period in 2014 while year-to-date revenues were up from $130 million to $199 million.
Earnings per share totalled 0.72 cents in the third quarter, as against 0.56 centsa year earlier.
The group said it sold seven aircraft during the quarter with a net book value of $276 million at a gain of $21 million. Avolon also secured a sale and leaseback transaction for five Boeing 787-9 aircraft delivering to Hainan Airlines in 2016 and 2017.
At the end of the three months under review the lessor owned and managed a fleet of 154 aircraft.
Avolon re-affirmed full-year expectations to deliver aircraft with a net book value of $1.65 billion and said trading volume of $800 million had already been secured for 2016, which is already ahead of the expected outcome of $756 million for 2015.
"The positive momentum in the business has continued through the third quarter as illustrated by the 49 per cent year-on-year growth in adjusted net income and the 330 basis points expansion of adjusted return on equity, said Avolon chief executive Domhnal Slattery.
“We have delivered on our committed pipeline and we are very pleased to reaffirm our 2015 full year guidance for reported returns on the back of our improving funding costs and a strong trading performance,” he added.
Mr Slattery said the takeover deal with Bohai, which shareholders backed last month, should be completed by the end of the first quarter of 2016.
The deal sees Bohai acquiring Avolon in a transaction valued at $7.6 billion.
