TIDMDNA
RNS Number : 6554P
Doric Nimrod Air One Limited
06 October 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THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT
FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,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 OCTOBER 2011
Doric Nimrod Air One Limited (the "Company"), a new
Guernsey-domiciled company, is pleased to present the third
quarterly Fact Sheet in respect of the period from 1 July 2011 to
30 September 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 the end of August 2011, a total of
1,558 flight cycles were registered. Total flight hours were
12,548. This is equal to an average flight duration of
approximately eight hours.
The lessee currently deploys its A380 fleet on thirteen
different routes. From its base in Dubai, the A380 flies to Europe
(London, Manchester and Paris), Asia (Bangkok, Beijing, Hong Kong,
Shanghai and Seoul), North America (New York and Toronto), the
Australian continent (Sydney and Auckland) and within the Middle
East to Saudi Arabia (Jeddah). With Johannesburg, Kuala Lumpur,
Rome and Munich four additional destinations will be added to
Emirates A380 route network over the next few months. Johannesburg
will be the first airport in Africa to be served by an Emirates
A380 aircraft. The A380 MSN 016 is regularly in service to most of
the existing destinations on all continents.
Company Facts (30th September 2011)
--------------------------------------------------------------
Listing LSE and CISX
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Ticker DNA
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Share Price 115.5p
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Market Capitalisation GBP47 million
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Targeted Dividend 2.25p per quarter (9p per annum)
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Targeted Dividend Payment April, July, October, January
Dates
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Currency GBP
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Launch Date/Price 13(th) December 2010 / 100p
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Incorporation Guernsey
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Asset Manager Doric Asset Finance Limited
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Corp & Shareholder Advisor Nimrod Capital LLP
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Administrator Anson Fund Managers Ltd
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Auditor Ernst and Young LLP
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Market Makers Shore Capital Ltd
Winterflood Securities Ltd
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SEDOL, ISIN B4MF389 , GG00B4MF3899
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Year End 31(st) March
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Stocks & Shares ISA Eligible
--------------------------- ---------------------------------
Website www.dnairone.com
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Maintenance status
Emirates maintains its A380 aircraft fleet based on a
maintenance program according to which minor maintenance checks are
performed every 1,500 flight hours and more significant maintenance
checks every 24 months or 12,000 flight hours, whichever comes
first. The first major maintenance check of the aircraft was in
November 2010 when the aircraft had almost 9,000 flight hours. A
major maintenance check (C check) is expected to fall due in the
third quarter of 2012.
Inspections
In April 2011 the scanning of the technical records was updated
by the asset manager. The next inspection of the aircraft is
scheduled during the aforementioned C check in 2012.
2. Market Overview
In line with the global economic outlook the prospects for the
air transport markets have deteriorated over the last few months.
Nevertheless, air travel continued to expand at an annual rate of
more than 6 per cent until the end of July 2011. During this time
period international markets generally performed stronger at a
growth rate of 7.8 per cent compared to the domestic air transport
markets with an average growth rate of just 4.0 per cent.
Performance between the different regions of the world continued
to differ across international markets. While Latin America and
even Europe achieved two-digit growth rates by the end of July 2011
the growth patterns were relatively more muted in North America and
Asia/Pacific. Nevertheless, the International Air Transport
Association (IATA) predicts that economic growth in the emerging
markets of Asia and the Middle East will be one of the key drivers
of air traffic expansion especially in the medium and longer
term.
In the domestic markets these differences were even bigger. In
particular the domestic markets in India and Brazil continued to
expand with growth rates of over 18 per cent until July 2011. Other
domestic markets like the US increased by just 2.4 per cent.
While passenger air traffic remained robust the stagnation of
air freight became apparent on both international and domestic
markets. On international markets the growth rate of freight air
traffic was on average just 1.5 per cent by the end of July 2011.
On domestic markets it was even negative. In the short term the
global aviation industry continues to face some challenges and
uncertainties such as the risk of a slower than anticipated
economic recovery or the high level of the jet kerosene price.
Nevertheless, IATA expects air traffic to expand by 4.6 per cent
this year which is almost in line with the long-time trend. IATA
also recently raised its net post-tax profit forecast for the
global airline industry in 2011 to USD 6.9 billion, after
downgrading the prediction from USD 8.6 billion to USD 4 billion in
June 2011. The better than expected performance in the passenger
business in the first half of 2011 contributed to the increased
profitability now anticipated for this year.
IATA: Industry Outlook June/September 2011; Air Transport Market
Analysis July 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 Emirates Group companies - comprising Emirates Airlines, the
airport operator Dnata and their subsidiary - had a successful
business year 2010/2011. Profit rose by 42.9 per cent to a record
high of USD 1.6 billion. This result marked the Group's 23rd
consecutive year of profit.
In the face of many political and environmental challenges, the
Group's revenue increased by 26.4 percent to USD 15.6 billion. This
was mainly achievable due to the airline's ability to swiftly
adjust flight schedules and redeploy aircraft to balance the
network, thus optimizing revenue. The airline proved its ability to
adapt to changing market conditions.
Emirates Airline's revenues grew by 25 percent from last year to
reach USD 14.8 billion. The net profit of the airline alone
increased to USD 1.5 billion. This positive result was mainly
driven by a remarkable high passenger seat factor of 80 per cent in
the business year 2010/2011 while at the same time the seat
capacity was substantially increased by 13 per cent. Overall as
many as 31.4 million passengers flew with Emirates Airline in the
last business year - four million passengers more than in
2009/2010. Especially due to higher fuel cost and an overall growth
in staff numbers the operating cost of the airline also increased
by 22.7 per cent to USD 13.3 billion. Passenger yield increased by
8.5 per cent to approximately 7.6 US-cent per RPK (Revenue
Passenger Kilometre) in 2010/2011.
At the same time Emirates significantly increased its order for
new aircraft, adding 32 additional Airbus A380s and 30 Boeing
777-300ERs. The new orders brought the airline's total number of
aircraft on order at the end of the business year to 193. Emirates
took delivery of eight new aircraft during 2010/2011 including one
Boeing 777-300ER and seven A380s, expanding the airline's fleet
size to 148 aircraft. The current fleet of the lessee consists of
157 long haul aircraft, of which 15 A380.
Expanding its global network, the airline launched passenger
services to six new destinations: Amsterdam, Prague, Al Medinah al
Munawarah, Madrid, Dakar and Basra. The Emirates A380 network was
further expanded during the year with three new destinations;
Beijing, Hong Kong and Manchester as well as the highly anticipated
reintroduction of the A380 service to New York. In the current
business year the airline already announced to start operations to
St. Petersburg, Ahmedabad (in India) and Dublin. A new cargo
service was introduced to Sydney in September 2011.
During the business year 2010/2011 airport operator Dnata
continued its international expansion by taking ownership of Alpha
Flight Group Ltd, a leading caterer with operations in 61 airports
globally. This acquisition means that Dnata is now the world's
fourth largest air services provider.
Total equity of the Emirates Group reached a level of almost USD
5.7 billion as of the end of the business year 2010/2011.The total
cash balance of the Group rose to USD 4.4 billion as of end of
March 2011.
Exchange Rate: USD = AED 3.67Source: Emirates
Business figures for the first half of the current year
2011/2012 are expected to be announced sometime in November
2011.
4. Aircraft - A380
At the end of August 2011 the global A380 fleet consisted of 54
planes that were operated by Emirates, Singapore Airlines, Qantas,
Air France, Lufthansa and Korean Airways.
By the end of August 2011 Airbus so far delivered 13 new A380
aircraft this year, of which four went to Lufthansa and three each
to Qantas and Korean Airways. In addition two A380 aircraft were
delivered to Air France and one to Singapore Airlines. However, the
A380 order backlog was still 182 units on August 31, 2011. In
August 2011 the Australian flag carrier Qantas announced it will
defer the delivery of its final six out of a total of 20 ordered
A380 aircraft until the 2018 to 2021 time frame. However, the
manufacturer Airbus expects other customers to fill the available
slots thus causing no disruption to the production of that aircraft
type.
In the first eight months of 2011, Airbus won firm orders from
South Korean Asiana Airlines as well as from the Japanese low-cost
carrier Skymark Airlines Inc. each for six 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.
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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