TIDMDNA
RNS Number : 4448E
Doric Nimrod Air One Limited
06 April 2011
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT
FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY
JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. THE INFORMATION
CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR
SALE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY
JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS
UNLAWFUL.
DORIC NIMROD AIR ONE LIMITED
Announcement of Asset Manager's Report
6 APRIL 2011
Doric Nimrod Air One Limited (the "Company"), a new
Guernsey-domiciled company, is pleased to present the first
quarterly Fact Sheet in respect of the period from launch on 13
December 2010 to 31 March 2011.
Doric Asset Finance Limited, the Company's Asset Manager, has
provided the Company with this commentary on the Company's airplane
and a copy of their report is appended below for the benefit of
shareholders.
*****
On the invitation of the directors of the Company, the following
commentary has been provided by Doric Asset Finance Limited as
Asset Manager of the Company and is provided without any warranty
as to its accuracy and without any liability incurred on the part
of the Company, its directors and officers and service providers.
The commentary is not intended to constitute, and should not be
construed as, investment advice. Potential investors in the Company
should seek their own independent financial advice and may not rely
on this communication in evaluating the merits of an investment in
the Company. The commentary is provided as a source of information
for shareholders of the Company but is not attributable to the
Company.
QUARTERLY FACT SHEET
DORIC NIMROD AIR ONE LIMITED
LSE: DNA
CISX: DNA
The Company
Doric Nimrod Air One Limited ("DNA") is a Guernsey domiciled
company which listed on the Specialist Fund Market of the London
Stock Exchange and the Channel Islands Stock Exchange on 13(th)
December 2010. DNA has purchased one Airbus
A380-861 aircraft, manufacturer's serial number (MSN) 016, which
it has leased to Emirates Airlines, the national carrier owned by
the Investment Corporation of Dubai, based in Dubai, United Arab
Emirates.
Investment Strategy
DNA's investment objective is to obtain income returns and a
capital return for its Shareholders by acquiring, leasing and then
selling a single aircraft. DNA will receive income from the lease
and its directors intend to target a gross distribution to
shareholders of 2.25 pence per share per quarter (9p per
annum).
1. The Doric Nimrod Air One Airbus A380
The Airbus A380 with manufacturer's serial number (MSN) 016 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 year-end 2010 a total of 1,188
flight cycles were registered. Total flight hours were 9,447. This
is equal to an average flight duration of almost 8 hours. The
aircraft was transferred into the ownership of DNA on 13th December
2010.
The lessee currently deploys its A380 fleet on twelve different
routes. From its base in Dubai the A380 flies to Europe (London,
Manchester and Paris), Asia (Bangkok, Beijing, Hong Kong and
Seoul), North America (New York and Toronto), the Australian
continent (Sydney and Auckland) and within the Middle East to Saudi
Arabia (Jeddah). The A380 MSN 016 is regularly in service to most
of these destinations on all continents.
Company Facts (31(st) March 2011)
----------------------------------------------------------------
Listing LSE and CISX
----------------------------- ---------------------------------
Ticker DNA
----------------------------- ---------------------------------
Share Price 112.5p
----------------------------- ---------------------------------
Market Capitalisation GBP48 million
----------------------------- ---------------------------------
Anticipated Dividend 2.25p per quarter (9p per annum)
----------------------------- ---------------------------------
Anticipated Dividend Payment April, July, October, January
Dates
----------------------------- ---------------------------------
Currency GBP
----------------------------- ---------------------------------
Launch Date/Price 13(th) December 2010 / 100p
----------------------------- ---------------------------------
Incorporation Guernsey
----------------------------- ---------------------------------
Asset Manager Doric Asset Finance Limited
----------------------------- ---------------------------------
Corp & Shareholder Advisor Nimrod Capital LLP
----------------------------- ---------------------------------
Administrator Anson Fund Managers Ltd
----------------------------- ---------------------------------
Auditor Ernst and Young LLP
----------------------------- ---------------------------------
Market Makers Shore Capital Ltd
Winterflood Securities Ltd
----------------------------- ---------------------------------
SEDOL, ISIN B4MF389 , GG00B4MF3899
----------------------------- ---------------------------------
Year End 31(st) March
----------------------------- ---------------------------------
Stocks & Shares ISA Eligible
----------------------------- ---------------------------------
Website www.dnairone.com
----------------------------- ---------------------------------
Maintenance status
The first significant maintenance event of the aircraft was
performed in October/November 2010. At that moment the utilization
of the A380 stood at 1,132 flight cycles and 8,964 flight hours.
Emirates maintains its A380 aircraft fleet based on a periodically
occurring check program according to which small checks are
performed every 1,500 flight hours and more significant checks
every 24 months or 12,000 flight hours, whichever comes first. The
next more significant maintenance check is expected to fall due in
the third quarter of 2012.
Inspections
The first inspection of the aircraft was conducted by the asset
manager Doric Asset Finance in Dubai as a pre-purchase inspection
of the aircraft in December 2010. The aircraft was in a very good
condition. Besides some normal wear and tear in the interior of the
aircraft the A380 was maintained to a high standard in the
passenger cabin and associated galleys and toilets.
In addition to the physical inspection of the aircraft an audit
of the aircraft's technical documentation was performed by the
asset manager. The technical records were also in a very good
condition and well presented.
The next inspection of the aircraft is currently planned to take
place in the winter of 2011/2012.
2. Market Overview
The international air transport market showed resilience in 2010
and resumed the growth path following the downturn that was caused
by the global financial crisis. According to the data published by
the International Air Transport Association (IATA) in February
2011, passenger traffic increased by 8.2 per cent in 2010 despite
the temporary suspension of the European airspace in April 2010
following the ash cloud caused by the Icelandic volcano
Eyjafjallajokull. In the air freight industry the growth rate was
even more impressive with an annual increase of 20.9 per cent.
In line with these growth rates yields and revenues of airlines
worldwide improved year-over-year. IATA estimates that the yields
increased by 7.3 per cent in the air passenger market and by 7.9
per cent in the freighter market in 2010. The combined global
revenue of all airlines increased by 15.9 per cent to US$ 560
billion and aggregate net profit of the global airline industry
increased to US$ 8.9 billion in 2010.
However, the development in the air transport market showed
significant regional differences in 2010. The growth leaders were
Asia/Pacific (+9.0 per cent), Middle East (+17.8 per cent) and
Africa (+12.9 per cent) whereas the growth in Europe (+5.1 per
cent) and North America (+7.4 per cent) was relatively more muted.
The reason for these heterogeneous growth patterns is largely
attributable to the different pace of macroeconomic developments in
the various regions to which the air traffic growth is closely
connected. IATA predicts that this trend of macroeconomic
imbalances between the more developed industrial nations in North
America and Europe on one hand and the dynamic emerging markets in
countries such as China or India on the other hand is set to
continue. Asia/Pacific is expected to overtake North America as the
most important region of the air transport market in the medium
term. The average annual growth rates of the international air
traffic until 2014 are expected to range from 4.7 per cent in
Europe to 7.6 per cent in Asia and 9.4 per cent in the Middle East,
respectively.
On 29(th) March IATA announced scheduled international traffic
for February 2011 showing increases of 6.0 per cent and 2.3 per
cent respectively for passenger and cargo demand compared to
February 2010. "As the unrest in Egypt and Tunisia spreads across
the Middle East and North Africa, demand growth across the region
is taking a step back. The tragic earthquake and its aftermath in
Japan will most certainly see a further dampening of demand from
March. The industry fundamentals are good. But extraordinary
circumstances have made the first quarter of 2011 very difficult,"
said Giovanni Bisignani, IATA's Director General and CEO (Source:
IATA - Regional Outlook, February and March 2011).
3. Lessee - Emirates Key Financials and Outlook
The aircraft is leased to Emirates for an initial term of 12
years, with fixed lease rentals for the duration.
The airline's latest financial figures for the first six months
of the current financial year 2010/2011 were published in November
2010. Hence, these results were already part of the Doric Nimrod
Air One prospectus that was issued in December 2010 and can be
summarized as follows:
Emirates generated a net profit of AED 3.4 billion (USD 925
million) for the first six months of the current financial year
ending 30th September 2010. This represents an increase of 351.2
per cent compared to the same period of the previous year. The
reported revenue, including other operating income, of AED 26.4
billion (USD 7.2 billion) for the half-year, represented a growth
of 35.5 per cent compared to the previous year. Emirates fiscal
year closes at the end of March.
Emirates is expected to post record results next month despite
regional political turbulence and the rising price of oil. Analysts
estimates indicate that the Dubai Government-owned carrier is
expected to achieve a net profit of about USD 2 billion (AED 7.34
billion).
At the beginning of March 2011, Emirates was ranked the 3r(d)
largest airline worldwide by Centre for Asia Pacific Aviation
measured by capacity (available seat kilometers) with a capacity
increase of 9.9 per cent for March (year-over-year).
Commenting on the impact of the recent uprisings in the Middle
East on the Emirates' operating results, Tim Clark (Emirates
President) told Reuters in an interview at the beginning of the
month that initially load factors "were down 6-7 percentage points
at about 74 per cent, but now [Emirates] is back at 80 per cent"
level (Source: Emirates, CAPA, Reuters, The National).
In a recent research note, Royal Bank of Scotland (RBS) said it
expected Emirates and other Gulf carriers to leverage their
geographic advantage and focus their growth on traffic flows among
India, China, Africa and the Middle East. By 2020, Emirates will be
operating about 250 aircraft, including some from additional orders
of the A380, and will have added approximately 46 destinations,
with a heavier emphasis on south Asia and North America, RBS
reported.
4. Aircraft - A380
At year-end 2010 the global fleet of A380 aircraft consisted of
41 planes that were operated by Emirates, Singapore Airlines,
Qantas, Air France and Lufthansa. According to Airbus these
aircraft completed more than 26,000 commercial flights until the
end of 2010 and carried more than 9 million passengers. In 2010
alone Airbus delivered 18 new A380 aircraft. However, the A380
order backlog was still 197 units as of year-end 2010. In 2010
Emirates increased its orders by an additional 32 A380
aircraft.
During the first quarter of 2011 Airbus delivered two additional
A380 aircraft to Qantas, which brings the current total to 43
aircraft in operation worldwide. In June 2011 Korean Air will be
the sixth carrier that will start operating the A380.
In the first quarter 2011, Airbus won firm orders from South
Korean Asiana Airlines and from the Japanese low-cost carrier
Skymark Airlines Inc. for six and four A380 aircraft, respectively.
Skymark will become the first budget airline and the first Japanese
carrier to fly the Airbus A380, which can carry up to 853 people in
an all-economy class configuration. The airline is planning its
international expansion and intends to use the new A380s on
long-haul services between Tokyo and London, Paris and Frankfurt
when deliveries start in 2014.
At the same time, ILFC (International Lease Finance Corporation)
cancelled its original order for 10 aircraft at the beginning of
March with a view to readjust its order book to a larger proportion
of narrowbody aircraft.
Source: Doric Asset Finance Limited
THE END
For further information, please contact:
For administrative and company information:
Anson Fund Managers Limited
+44 (0) 1481 722260
For shareholder information:
Nimrod Capital LLP
Richard Bolchover and Marc Gordon
+44 (0) 20 3355 6855
END OF ANNOUNCEMENT
E&OE - in transmission.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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