Profits at Irish aircraft lessor SMBC Aviation Capital grew 35 per cent to a record $460 million (€423m) in the 12 months ended March 31st, the company said on Thursday.
Dublin-headquartered SMBC buys aircraft from manufacturers Airbus and Boeing that it leases to airlines around the world. The company said revenues from leasing aircraft rose 41 per cent to $1.9 billion in its last financial year, which ended on March 31st.
Profit before tax climbed 35 per cent to $460 million, which SMBC noted was a record. That excludes a $756 million settlement it received from insurers last October relating to 16 aircraft that SMBC had previously leased to Russian airline Aeroflot, which brought the company’s total pretax surplus to $1.2 billion.
That settlement, with Russian business Insurance Company NSK, related only to SMBC’s claims under Aeroflot’s insurance and reinsurance claims. The company is continuing to pursue other insurance claims, and is due in the High Court in Dublin on Tuesday, along with several other lessors, where it is suing a number of insurers.
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SMBC was one of several Irish companies in its business that terminated aircraft leases to Russian airlines following the country’s invasion of Ukraine in February 2022 to comply with sanctions. Many of the planes remained in Russia as the lessors were unable to retrieve them.
SMBC said on Thursday that it had agreed $5 billion worth of leases last year and delivered aircraft to 18 different customers. The company has 271 aircraft on order from Airbus and Boeing.
Peter Barrett, SMBC chief executive, said that in a market where the supply was tight there was significant demand for its aircraft. He described the results for the financial year ended on March 31st as strong.
Mr Barrett added that SMBC’s balance sheet and shareholder support left it “well-positioned to drive long-term growth and stable returns”.
SMBC’s shareholders are Japan’s Sumitomo Mitsui Financial Group and Sumitomo Corporation.
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