Chairman’s speech in General Assembly Meeting
Kuwait City, Kuwait - 12 December 2011 - It is my pleasure to welcome all the present shareholders and members of the media. Thank you for your participation and I wish you all success and prosperity.
Alafco has had another year of record breaking performance. The company earned a net profit of KD 47 million for the fiscal year ended 30 September 2011 which translates into earnings per share of Fils 60. Total assets increased 8% over the last fiscal year to KD 581 million. The shareholders' equity rose 39% as compared to the previous year to KD 142.5 million. The company's General Assembly have approved the Board of Directors' recommendation to distribute cash dividend of Fils 10 per share to all registered shareholders as at the date of the General Assembly.
The unprecedented financial results during the 2010/2011 fiscal year were as a result of the growth in leasing activity in regional and international markets and also due to the amendment of some aircraft purchase agreements with manufacturers. Alafco has a customer base of 16 airlines globally, and the lease portfolio increased from 40 aircraft to 48 aircraft during the year. The company took delivery of 8 new aircraft last year.
Now I present to you Alafco's achievements, by transaction, during the fiscal year ended 30 September 2011.
Eight new aircraft were delivered to various airlines as follows:
- 2 Airbus A320-200 aircraft to Saudi Arabian Airlines
- 3 Boeing B737-800 aircraft to Ethiopian Airlines
- 2 Boeing B737-800 aircraft to Okay Airways in China
- 1 Boeing B737-800 aircraft to Caribbean Airlines in Trinidad and Tobago
New aircraft orders:
During the year, Alafco placed orders with Airbus for the following aircraft:
- Six new Airbus A350-900 XWB aircraft valued at US $1.6 billion at list prices; and
- Fifty new Airbus A320neo aircraft valued at US $4.5 billion also at list prices.
Amendment of aircraft purchase agreement with manufacturers:
- Some contracts with manufacturers were amended resulting in a profit of KD 37 million.
- Alafco obtained financing facilities during the year in the amount of US $313.3 million from local and international banks.
In the first quarter of the 2011/2012 fiscal year, Alafco amended another aircraft purchase agreement resulting in an estimated profit of KD 13 million that shall be reflected in the financial results for the quarter ended 31 December 2011.
Also during first quarter of the 2011/2012 fiscal year, Alafco concluded agreements for (1) the lease of 6 Airbus A350-900XWB aircraft with Thai Airways for a period of 12 years and (2) lease of 3 A320-200 aircraft to Vietnam based Vietjet Air. The aircraft leased to Vietjet Air are scheduled to enter service during the coming three months.
In conclusion, I thank our customers for their loyalty and extend my sincere thanks to all shareholders of Alafco for placing their trust in the company and believing and its future. I also thank the Board of Directors, the executive management and all Alafco staff for their contribution to the company's success.