TIDMDNA
RNS Number : 3567T
Doric Nimrod Air One Limited
11 October 2017
QUARTERLY FACT SHEET
30 September 2017
DORIC NIMROD AIR ONE LIMITED
LSE: DNA
The Company
Doric Nimrod Air One Limited ("the Company") is a Guernsey
domiciled company, which is listed on the Specialist Fund Segment
(SFS) of the London Stock Exchange's Main Market. The Company has
purchased one Airbus A380-861 aircraft, manufacturer's serial
number (MSN) 016, which it has leased for an initial term of 12
years, with fixed lease rentals for the duration, to Emirates
Airline ("Emirates"), the national carrier owned by the Investment
Corporation of Dubai, based in Dubai, United Arab Emirates.
Investment Strategy
The Company's investment objective is to obtain income returns
and a capital return for its shareholders by acquiring, leasing and
then selling a single aircraft. The Company receives income from
the lease, and targets a gross distribution to the shareholders of
2.25 pence per share per quarter (9p per annum). It is anticipated
that income distributions will continue to be made quarterly.
The total return for a shareholder investing today (30 September
2017) at the current share price consists of future income
distributions during the remaining lease duration and a return of
capital at dissolution of the Company. The latter payment is
subject to the future value and the respective sales proceeds of
the aircraft, quoted in US dollars and the USD/GBP exchange rate at
that point in time. Since launch, three independent appraisers have
provided the Company with their future values for the aircraft at
the end of each financial year. The latest appraisals available are
dated the end of March 2017. The table below summarises the total
return components, calculated on different exchange rates and using
the average value of the aircraft as provided by the three
independent external appraisers.
The contracted lease rentals are calculated and paid in US
dollars to satisfy debt interest and principal, and in sterling to
satisfy dividend distributions and Company running costs, which are
in sterling. The Company is, therefore, insulated from foreign
currency market volatility during the term of the lease.
With reference to the following two tables, there is no
guarantee that the aircraft will be sold at such a sale price or
that such capital returns would be generated. It is also assumed
that the lessee will honour all its contractual obligations during
the entire anticipated lease term:
I. Implied Future Total Return Components Based on
Appraisals
The implied return figures are not a forecast and
assume the Company has not incurred any unexpected
costs.
Aircraft value at lease expiry according to
* Prospectus appraisal USD 110 million
* Latest appraisal(1) USD 104 million
==============================================================================================
Per Share Income Distributions Return of Capital Total Return(2)
(rounded)
--------------------- --------------------------- ---------------------------
Prospectus Latest Prospectus Latest
Appraisal Appraisal(3) Appraisal Appraisal(3)
--------------------- ----------- -------------- ----------- --------------
Prospectus
FX Rate(4) 50p 161p 153p 211p 202p
------------- --------------------- ----------- -------------- ----------- --------------
Current
FX Rate(5) 50p 191p 180p 240p 230p
------------- --------------------- ----------- -------------- ----------- --------------
(1) Date of valuation: 31 March 2017
(2) Includes future dividends
(3) Average of the three appraisals as at the Company's
fiscal year-end in which the lease reached the end
of its 12-year term
(4) 1.5900 USD/GBP
(5) 1.3398 USD/GBP (30 September 2017)
II. Company Facts (30 September 2017)
Listing LSE
---------------------------- ---------------------------------
Ticker DNA
---------------------------- ---------------------------------
Current Share Price 114.5p (closing)
---------------------------- ---------------------------------
Market Capitalisation GBP 48.6 million
---------------------------- ---------------------------------
Initial Debt USD 122 million
---------------------------- ---------------------------------
Outstanding Debt USD 52.5 million (43% of Initial
Balance Debt)
---------------------------- ---------------------------------
Current/Future Anticipated 2.25p per quarter (9p per
Dividend annum)
---------------------------- ---------------------------------
Earned Dividends 58.5p
---------------------------- ---------------------------------
Current Dividend
Yield 7.86%
---------------------------- ---------------------------------
Dividend Payment April, July, October, January
Dates
---------------------------- ---------------------------------
Total Expense Ratio 1.5% (based on Average Net
Assets)
---------------------------- ---------------------------------
Currency GBP
---------------------------- ---------------------------------
Launch Date/Price 13 December 2010 / 100p
---------------------------- ---------------------------------
Remaining Lease Duration 5 years 3 months
---------------------------- ---------------------------------
Incorporation Guernsey
---------------------------- ---------------------------------
Aircraft Registration A6-EDC (16.12.2022)
Number (Lease Expiry
Date)
---------------------------- ---------------------------------
Asset Manager Doric GmbH
---------------------------- ---------------------------------
Corp & Shareholder Nimrod Capital LLP
Advisor
---------------------------- ---------------------------------
Administrator JTC Fund Solutions (Guernsey)
Ltd
---------------------------- ---------------------------------
Auditor Deloitte LLP
---------------------------- ---------------------------------
Market Makers Jefferies International Ltd,
Numis Securities Ltd,
Shore Capital Ltd,
Winterflood Securities Ltd,
Canaccord Genuity Ltd
---------------------------- ---------------------------------
SEDOL, ISIN B4MF389, GG00B4MF3899
---------------------------- ---------------------------------
Year End 31 March
---------------------------- ---------------------------------
Stocks & Shares ISA Eligible
---------------------------- ---------------------------------
Website www.dnairone.com
---------------------------- ---------------------------------
Asset Manager's Comment
1. The Doric Nimrod Air One Airbus A380
The Airbus A380 is registered in the United Arab Emirates under
the registration mark A6-EDC. For the period from original delivery
of the aircraft to Emirates in November 2008 until the end of
August 2017, a total of 4,642 flight cycles were logged. Total
flight hours were 38,858. This equates to an average flight
duration of eight hours and 22 minutes.
The A380 owned by the Company visited Dubai, Milan, Munich, and
New York JFK during the third quarter of 2017.
Maintenance Status
Emirates maintains its A380 aircraft fleet based on a
maintenance programme according to which minor maintenance checks
are performed every 1,500 flight hours, and more significant
maintenance checks (C checks) at 24 month or 12,000 flight hour
intervals, whichever occurs first.
Emirates bears all costs (including for maintenance, repairs and
insurance) relating to the aircraft during the lifetime of the
lease.
2. Market Overview
In the first seven months of 2017, global revenue passenger
kilometres (RPKs) grew by 7.7% compared to the same period in the
previous year. The robust end to 2016 provided for a favourable
start for RPK growth rates in 2017. However, IATA notes that the
upward trend in seasonally-adjusted (SA) passenger traffic has
slowed since the end of 2016. While industry-wide RPKs were growing
at an annualized rate of more than 12% coming into 2017, that
growth has begun to slow to around 6% over the past three months.
This annualized growth rate falls between its five-year and
ten-year averages (6.4% and 5.5%, respectively).
During the first seven months of this year, industry-wide
available seat kilometres (ASKs) increased by 6.1%. As ASKs and
RPKs have trended upward at similar rates, the global passenger
load factor (PLF) rose by 1.2 percentage points in the first seven
months of 2017, resulting in a PLF of 81.3%. All regions, except
for the Middle East, recorded increases in PLF in the first seven
months of 2017 compared to the same period in 2016. PLF in the
Middle East decreased by 0.2 percentage points to 74.7% during this
period.
International RPKs flown by Middle Eastern airlines have grown
by 7.0% in the first seven months of 2017, compared with the
five-year average of 11.2%. Adjusting for the later timing of Eid
this year, which could have led to a jump in July on a
month-on-month basis, SA traffic volumes are still level with where
they started this year. In particular, the Middle East to North
America market continues to feel the effects of a combination of
factors, including the (recently-lifted) ban on personal electronic
devices (PED) as well as the proposed travel bans to the US.
Traffic growth on the segment was already slowing in early-2017, in
line with the slowing growth rate of non-stop services flown by the
largest Middle Eastern airlines. However, in June, RPKs on these
routes between the Middle East and North America fell for the
fourth consecutive month in year-on-year terms (-6.8%).
With an RPK growth of 10.2% until July 2017 Asia/Pacific-based
operators outperformed the overall market demand this year. Europe
ranked second with 8.6% and Africa third with 7.7%, ahead of Latin
America (6.8%). With a combined domestic and international RPK
growth of 6.7% the Middle East reached the second-last place, with
North America achieving 3.9%.
For 2017, IATA forecasts that the airlines fuel bill will rise
to USD 129 billion and represent 18.8% of average operating costs.
As jet fuel prices have begun to rise with oil prices, IATA expects
an average price of USD 64 per barrel of jet fuel during 2017.
(c) International Air Transport Association, 2017. Air Passenger
Market Analysis July 2017, Air Passenger Market Analysis June 2017,
Economic Performance of the Airline Industry, 2017 Mid-Year Report.
All Rights Reserved. Available on the IATA Economics page.
3. Lessee - Emirates Key Financials
In the 2016/17 financial year ending on 31 March 2017, Emirates
recorded the 29(th) consecutive year of profit with a net result of
USD 340 million (AED 1,250 million), down 82% compared to the
previous financial year. The net profit margin was 1.5%, down by 7
percentage points. Revenue for the period remained unchanged at USD
23.2 billion (AED 85.1 billion). However, lower results were to be
expected as Emirates' president Tim Clark hinted earlier in March
2017 that the increased volatility in the market had affected
Emirates' performance. His Highness Sheikh Ahmed bin Saeed Al
Maktoum, Chairman and Chief Executive of Emirates, listed a number
of destabilizing events, which impacted travel demand during the
year: the Brexit vote, Europe's immigration challenges and terror
attacks, new policies impacting air travel into the US, and
currency devaluation. He deemed the past fiscal year as "one of our
most challenging years to date".
In the face of these challenges, Emirates increased its
passenger numbers, RPKs and cargo carried during the 2016/17
financial year. Emirates carried a record 56.1 million passengers
(8.1% more than in the previous fiscal year), increased capacity
for passengers (measured in ASK) by 10.3% and increased RPKs by
8.4%. As a result, the passenger seat factor dropped by 1.4
percentage points to 75.1%. In the 2016/17 annual report it was
noted that seat factor on the Emirates' A380 fleet was high - and a
testament of the customer preference for this aircraft. The share
of passengers carried on an A380 increased by 5 percentage points
to 37%.
The costs resulting from the ongoing efforts to expand capacity
contributed to a 7.7% increase in operating costs. While fuel
prices fell by 2%, an 8% uplift in line with the capacity increase
led the airline's fuel bill to increase 6%. Fuel costs as a
percentage of operating costs only slightly decreased from 25.7% to
25.4% during the reporting period, remaining the biggest cost
component for the airline, followed by personnel costs. The overall
increase in operating costs is marginally higher than the capacity
growth of 7.2%, measured in available tonne kilometre.
As of 31 March 2017, the balance sheet totalled USD 33.1 billion
(AED 121.6 billion), an increase of 2% compared to the previous
financial year. Total equity increased by 8.3% to USD 9.6 billion
(AED 35.1 billion) with an equity ratio of nearly 29%. The carrier
had a cash balance of USD 4.3 billion (AED 15.7 billion) at the end
of the period, down by USD 1.2 billion (AED 4.3 billion) compared
to the previous financial year. This included the repayment of
bullet bonds in the amount of USD 1.1 billion. The current ratio
stood at 0.73, meaning the airline would be able to meet nearly
three-quarters of its current liabilities by liquidating all its
current assets. Significant items on the liabilities' side of the
balance sheet included current and non-current borrowings and lease
liabilities in the amount of USD 13.9 billion - an increase of 1.8%
against the previous financial year.
In line with its strategy to increase capacity through a young
and efficient fleet, Emirates received a record of 35 wide-body
aircraft, consisting of 19 Airbus A380 and 16 Boeing 777-300ER,
during the 2016/2017 financial year. At the same time, the airline
also retired 27 older aircraft, bringing the average fleet age of 6
years 2 months down to 5 years 3 months, which is well below the
industry average of nearly 12 years. To fund its fleet growth,
Emirates raised USD 7.9 billion (AED 29.1 billion) during the
financial year through finance and operating leases as well as term
loans. Over the last ten years, the operator raised more than USD
47.3 billion (AED 173.7 billion) for aircraft financing.
In the 2016/17 financial year, Emirates launched services to six
new passenger points (Yinchuan and Zhengzhou in China, Yangon in
Myanmar, Hanoi in Vietnam, Fort Lauderdale and Newark in the US).
These new destinations add to Emirates' well-balanced regional
distribution, whereby no region represents more than 30 percent of
overall revenues. In line with increased demand, the operator added
frequencies and increased capacity to several existing destinations
of its global route network, which spanned 156 destinations in 83
countries by fiscal year end.
In June, the airline won the World's Best Inflight Entertainment
award for a record 13(th) year at this year's Skytrax World Airline
Awards, which are considered a global benchmark of airline
excellence. Nearly 20 million passenger reviewed over 320
airlines.
In July, Emirates announced that it is entering a broad
partnership with low-cost operator Flydubai, which will include a
codeshare and optimization of the airlines' networks. Both carriers
are government-owned, and the move aims to reduce unnecessary
competition, enabling Emirates to benefit from Flydubai's
single-aisle operations. Between them, the airlines operate routes
to 216 cities with networks that overlap to an extent. However,
they expect to be serving 240 destinations as a combined operation
by 2022, with a total fleet of 380 aircraft.
Source: ch-aviation, CNN, Emirates, FlightGlobal
4. Aircraft - A380
By mid-September 2017, Emirates operated a fleet of 97 A380s,
which currently serve 47 destinations within its global network via
its hub in Dubai. A380 destinations include: Amsterdam, Auckland,
Bangkok, Barcelona, Beijing, Birmingham, Brisbane, Casablanca,
Christchurch, Copenhagen, Doha, Dusseldorf, Frankfurt, Guangzhou,
Hong Kong, Johannesburg, Kuala Lumpur, Kuwait, London Gatwick,
London Heathrow, Los Angeles, Madrid, Manchester, Mauritius,
Melbourne, Milan, Moscow, Mumbai, Munich, New York JFK, Nice,
Paris, Perth, Prague, Rome, San Francisco, Sao Paulo, Seoul,
Shanghai, Singapore, Sydney, Taipei, Tokyo, Toronto, Vienna,
Washington, and Zurich.
As of mid-September 2017, the global A380 fleet consisted of 215
commercially operated planes in service. The thirteen operators are
Emirates (97), Singapore Airlines (19), Deutsche Lufthansa (14),
Qantas (12), British Airways (12), Air France (10), Korean Air
Lines (10), Etihad Airways (10) Malaysia Airlines (6), Qatar
Airways (8), Thai Airways (6), China Southern Airlines (5), and
Asiana Airlines (6). The number of undelivered A380 orders stood at
102.
Emirates expects the delivery of its 100(th) A380 later this
year. The increasing number of superjumbos allows the airline to
increase the number of A380 destinations as well as frequency on
existing routes: From March 2018, the carrier will add a fourth
daily A380 service from Dubai to Sydney, which will increase the
capacity for Emirates' Australian services by more than 7%. Also
from March 2018, the carrier will upgrade its third daily flight
between Dubai and Melbourne from a Boeing 777-300ER to an A380.
From October this year, Emirates will make its second daily flight
to Moscow an A380 service.
In August 2017, Emirates commenced Hajj services. The airline
operated 45 additional flights to Jeddah and 12 additional flights
to Medina between 17 August 2017 and 11 September 2017, in addition
to its regular three time daily Jeddah and twice daily Medina
frequencies. The A380 was used to support the increased demand to
Medina during this time. Emirates anticipated a total of 2 million
pilgrims traveling to Mecca, 20,000 of which would fly with
Emirates from destinations such as Yangon, Manchester, Mauritius,
Jakarta, Karachi, Lagos and Nairobi.
Speaking during the Aviation Festival event in London on 7
September, Emirates president Tim Clark stated that the airline
will capitalize on its flexibility in order to compete with
long-haul, low-cost operators. Clark noted that Emirates' fleet of
97 A380s would enable the airline to "compartmentalise" by offering
"three or four economy classes" on the main deck alone. This would
allow Emirates to match long-haul, low-cost operators in their base
price while still being to offer additional enhancements.
This summer, Airbus presented a development study for an
enhanced A380, called "A380plus". It includes aerodynamic
improvements like large winglets. An optimised cabin layout would
allow up to 80 additional seats.
As a result of weak sales, Airbus announced that it will cut
A380 deliveries in 2019 to eight aircraft. The production rate for
2018 remains at 12 aircraft. Airbus is expecting only a relatively
small impact from the cut in production rate, as a result of its
continuing effort to bring down fixed costs associated with the
programme.
Source: Ascend, Aviation Week, Bloomberg, CAPA, Emirates,
FlightGlobal, iflyA380, MarketWatch, Reuters
Contact Details
Company
Doric Nimrod Air One Limited
Dorey Court, Admiral Park
St Peter Port
Guernsey GY1 2HT
Tel: +44 1481 702400
www.dnairone.com
Corporate & Shareholder Advisor
Nimrod Capital LLP
3 St Helen's Place
London EC3A 6AB
Tel: +44 20 7382 4565
www.nimrodcapital.com
Disclaimer
This document is issued by Doric Nimrod Air One Limited (the
"Company") to and for the information of its existing shareholders
and does not in any jurisdiction constitute investment advice or an
invitation to invest in the shares of the Company. The Company has
used reasonable care to ensure that the information included in
this document is accurate at the date of its issue but does not
undertake to update or revise the information, including any
information provided by the Asset Manager, or guarantee the
accuracy of such information.
To the extent permitted by law neither the Company nor the Asset
Manager nor their directors or officers shall be liable for any
loss or damage that anyone may suffer in reliance on such
information. The information in this document may be changed by the
Company at any time. Past performance cannot be relied on as a
guide to future performance. The value of an investment may go down
as well as up and some or all of the total amount invested may be
lost.
This information is provided by RNS
The company news service from the London Stock Exchange
END
STREALEFFLEXFFF
(END) Dow Jones Newswires
October 11, 2017 10:45 ET (14:45 GMT)
Doric Nimrod Air One (LSE:DNA)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Doric Nimrod Air One (LSE:DNA)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
