Gecas reports 81% drop in pretax profits for 2020

Pretax profits at aircraft leasing firm GE Capital Aviation Services (Gecas) last year decreased sharply to $198.8 million (€167.6 million).

New accounts filed by the company, which has its headquarters in Shannon, show the firm recorded the 81 per cent drop in pretax profits as revenues decreased 22 per cent from $262.1 million to $203.5 million.

The drop in pretax profits arose from dividends received of $1.07 billion in 2019, compared with dividends received of $185.2 million last year.

Earlier this year it was announced that the global business of Gecas, and AerCap, which has its headquarters in Dublin, are to merge in a $30 billion deal that will make the combined business the largest global player in the aircraft leasing sector.

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Gecas employs 256 people at its Shannon base, and last year its directors shared $7.6 million in remuneration.

The directors’remuneration was made up of salary of $7.06 million, pension contributions of $374,000 and benefits in kind of $237,000.

Staff costs at the company decreased last year from $66.1 million to $46.8 million, which included share-based payments of $1.8 million.

The company paid out a dividend of $198 million during the year, and this followed a dividend pay-out of $1.1 billion in 2019.

In March this year, the company declared an interim dividend of $7 million.

Cash pool

On the impact of the pandemic, a note attached to the accounts states it has significantly affected the company’s customers’ operations “and by extension the activities, financial results and position of the company”.

The note states that at the date of signing off on the financial statements, the company had cash on deposit with a cash pool.

A modelled base-case scenario shows the company is expected to continue to have sufficient resources to avoid default on its obligation.

Shareholder funds at the end of December 2020 totalled $3.54 billion, including accumulated profits of $93.8 million.

The figures show the bulk of the company's revenues at 85 per cent, or $172.9 million, is generated from European customers, with customers in the Americas making up the remaining 14 per cent, or $28.9 million, and $1.7 million or 1 per cent in Asia.

Gecas – which has a fleet of more than 1,600 owned, managed and on-order aircraft and helicopters with more than 200 customers in over 70 countries – offers a wide range of aircraft types and financing options, including operating leases and secured debt financing, and also provides productivity solutions including spare engine leasing, spare parts financing and management.