Posted on: 27 September 2016 by Mark Howells
For the 2015/16 fiscal year (FY15/16) ending 30 June, Nordic Aviation Capital (NAC) recorded an EBITDA of $439 million, which marks an increase of 90% year-over-year.Likewise, the company’s operating profit (EBIT) has risen to $303 million for FY15/16 from $239 million in FY14/15. NAC says this ended in a positive net result of $142 million, up from $111 million, yielding a 22% return on equity.Commenting on the fiscal year, NAC’s CEO, Søren Overgaard, stated, “We have enlarged and diversified NAC’s customer base across all aircraft types from 40 to 53 airlines and we have placed aircraft with both new and long-term customers, well in tune with our business model of growing the business based on both increased market share and repeated sales.”During FY15/16, NAC added 43 aircraft to its active turboprop fleet and took steps to become a major player in the regional Embraer E-Jet market segment by entering into purchase agreements for 44 E-Jets. At the end of the fiscal year, NAC owned 278 aircraft and had purchase commitments for 52 aircraft. To support this portfolio growth, NAC continued to expand its financing relationships, adding $828 million to existing loan facilities and sourcing $995 million in new loan facilities during the fiscal year.In 2015, NAC founder Martin Møller entered into a partnership with European private equity investor EQT and Danish investment company KIRKBI Invest to further develop NAC. The parties jointly contributed a total of $200 million in additional equity and committed additional capital to pursue growth.“The new ownership is well on track with its ambitions: In the past 12 months, we have enhanced our position as the largest owner and lessor of turboprop aircraft and we have made a significant foray into the regional jet market,” commented Møller, who remains both chairman and a significant shareholder in the NAC Group. “We expect to further expand our position as the premier lessor of turboprops and regional jets in the year to come.”NAC expects to further improve revenue and operating profits in 2016/17. Along with sister companies Jetscape Aviation Group and Aldus Aviation, the company claims to own and manage approximately 15% of the global turboprop fleet and approximately 7% of the global E-Jet fleet.