The Abu Dhabi-based Oasis International Leasing Company has posted its financial results for the first half of the year 2002, in which the firm’s revenue amounted to 97.22 million Emirati dirhams ($26.46 million), while net profit reached Dh5.635 million.
Although both revenue and net profit are down on the same period last year, Gordon Dixon, Oasis Leasing's CEO, believes it is misleading to make a direct comparison. “The first half of 2001 was a period of growth, whereas the first half of 2002 represented a period of transition. Two aircraft came to the end of their leases and were re-leased to a new airline operator. We also extended an existing lease. Most importantly, we have kept all our assets occupied and generating income in an extremely difficult trading environment.”
The company’s Risk Adjusted Lease Book (RALB)—the present value of contracted future lease revenues—rose by Dh33 million to Dh828 million, an increase of 58 percent since the company began reporting its financial performance in 1998.
“A key performance indicator, RALB enables us to measure and communicate performance to investors and potential investors in a consistent and straightforward manner that goes beyond ‘profit today'”, said Mohammed Saif Al-Mazrouei, Oasis Leasing chairman.
“A leasing company is as good as its future cash flows and RALB, a tried and tested method of setting targets and measuring performance, provides transparent information about what the company is doing and where it sees itself in the future,” he added.
“We have been developing new investment opportunities that will start to bear fruit in the second half of the year, such as the recently announced MD82 deal with Continental Airlines. We have also seen clear evidence of increased regional interest in leasing projects and are experiencing greater activity levels in a number of asset sectors,” Al-Mazrouei said.
The Oasis Leasing strategy is to grow the company in a structured way, building up a portfolio of assets and to diversify into other sectors such as shipping and infrastructure. Since its creation five years ago, Oasis Leasing has generated Dh685 million in revenues from leasing and Dh88 million in profits, of which nine million Dh has come from asset trading.
Oasis Leasing's asset portfolio includes 13 aircraft on long-term lease to major regional and international flag carriers and a 50 percent stake in a capesize dry-bulk vessel. The company plans to build its asset and risk profile from its current $472 million value to $1.2 billion with targeted moves into shipping, infrastructure and power plant financing.
Oasis International was set up in 1997 with an initial paid-in capital of Dh500 million ($136 million) as a joint venture between United Arab Emirate (UAE) nationals and founding shareholders. Founders include British Aerospace, Kuwait-based Gulf Investment Corporation (GIC), 10 local institutions and 47 private investors. Oasis’ total number of UAE national shareholders now stands at more than 38,000. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
