Oasis reports profits

Oasis International Leasing, the Abu Dhabi-based aircraft leasing company, has announced pre-tax net profits of Dhs 4.685 million for 2003.

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By  Neil Denslow Published  April 4, 2004

Oasis International Leasing, the Abu Dhabi-based aircraft leasing company, has announced pre-tax net profits of Dhs 4.685 million (US $1.3 million) for 2003, up from the Dhs 8.533 million ($2.3 million) loss the company recorded in 2002. The figures confirm the company’s return to profitability, which began in the first half of 2003, when the company posted net profits of AED 3.4 million ($926,000). Revenue, as well as gross and operating profits also improved year on year, while operating and administrative costs were reduced. The company attributes its good results to the improving climate in the aviation sector and the increased activity in the leasing sector. “Last year was an eventful year,” comments Mohammed Saif Al-Mazrouei, chairman of Oasis Leasing. “The war in Iraq and SARS negatively affected business confidence and as a result global economic recovery was hesitant during the first half of 2003. “However, the second half was more stable and there are signs that the bottom of the trading cycle has been reached and a tentative recovery is underway in the aviation industry. Passenger volumes are recovering in those parts of the world hardest hit and airlines are slowly regaining confidence,” he continues. “There is surely no better evidence of this renewed confidence than recent developments in the UAE’s aviation sector. Oasis Leasing is working very hard to ensure that we play a role in the growth, development and prosperity of exciting new ventures like Etihad and Royal Jet,” Al-Mazrouei continues. During last year, Oasis managed the return and onward lease of four aircraft to new customers as well as extending three leases with existing customers. The company also re-financed five aircraft and renegotiated the leases and financings of four aircraft with Air Canada. Five new assets were also added to Oasis Leasing’s portfolio and the company also profitably traded some aviation based financial investments. “We have always made a point of emphasising the cyclical nature of our industry and that different asset types have different cycles,” comments Gordon Dixon, Oasis Leasing’s CEO. “Whilst aviation has been going through a down cycle, making acquisitions more attractive than disposals, shipping can be said to be the opposite of this. “Consequently, as 2003 drew to a close we took advantage of the buoyant nature of the dry bulk market and sold our Capesize vessel in January. This will be reflected in the first quarter of 2004.” The company’s board decided not to recommend a dividend payment to shareholders for 2003. “The directors took the view the shareholders’ long term interests are best served by reinvesting profits for longer term gain,” comments Dixon.

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