TIDMDNA
RNS Number : 0809V
Doric Nimrod Air One Limited
05 January 2012
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT
FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,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
5 January 2012
Doric Nimrod Air One Limited (the "Company"), a new
Guernsey-domiciled company, is pleased to present the fourth
quarterly Fact Sheet in respect of the period from 1 October 2011
to 31 December 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 November 2011, a total
of 1,687 flight cycles were registered. Total flight hours were
13,734. This is equal to an average flight duration of
approximately eight hours.
Emirates currently deploys its A380 fleet on sixteen different
routes. From its base in Dubai, the A380 flies to Europe (London,
Manchester, Munich, Rome and Paris), Asia (Bangkok, Beijing, Hong
Kong, Shanghai and Seoul), Africa (Johannesburg), North America
(New York and Toronto), and the Australian continent (Sydney and
Auckland) and within the Middle East to Saudi Arabia (Jeddah). With
Kuala Lumpur, an additional destination will be added to the route
network starting services from 1st January, 2012.
Company Facts (31st December 2011)
---------------------------------------------------------------
Listing LSE and CISX
---------------------------- ---------------------------------
Ticker DNA
---------------------------- ---------------------------------
Share Price 119.5p
---------------------------- ---------------------------------
Market Capitalisation GBP51 million
---------------------------- ---------------------------------
Targeted Dividend 2.25p per quarter (9p per annum)
---------------------------- ---------------------------------
Targeted 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 Limited
---------------------------- ---------------------------------
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
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 (so called C checks) every 24 months or 12,000 flight hours,
whichever comes first. A major maintenance check (C check) is
expected to fall due in the third quarter of 2012.
Inspections
The next inspection of the aircraft by the asset manager is
scheduled during the aforementioned C check in 2012.
2. Market Overview
Uncertainties regarding the global economic outlook still
depress the prospects for the air transport markets. This is
especially visible with respect to the worldwide transport of
freight by air, which fell in recent months, continuing the sharp
decline that began in June 2011. The level of freight tonne
kilometres flown in October 2011 was 4.7 per cent lower than the
same month a year ago, from June to October 2011 it fell by 5.0 per
cent. In comparison, total world trade in goods declined by
approximately one per cent over the last five months.
In contrast, the trend in the air passenger market remains
positive. Worldwide air travel grew in October at a rate of 3.6 per
cent compared to the same month last year. Until the end of October
2011, air travel continued to expand at an annual rate of 6.0 per
cent. International markets generally performed stronger at a
growth rate of 7.2 per cent compared to the domestic air transport
markets with an average growth rate of 4.1 per cent.
Performance between the different regions of the world continued
to differ across international markets. Despite the Eurozone crisis
one of the strongest regions in 2011 is Europe with a total growth
rate of 9.3 per cent until end of October. North American airlines
have cut capacity on US and international markets. Therefore air
travel expanded by just 2.6 per cent in that region. Asia-Pacific
airlines have seen weak international growth in 2011, although
domestic markets in India and China are expanding fast bringing the
total growth rate to a level of 5.3 per cent until end of October.
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.
The biggest risk facing the airline industry over the next
months is the economic turmoil that might result from a failure of
governments to resolve the Eurozone sovereign debt crisis.
Therefore, IATA has revised down their forecast for industry
profits in 2012 from USD 4.9 billion to USD 3.5 billion. In
addition, IATA is concerned that the sovereign debt crisis in the
Eurozone could result in a more severe banking crisis and more
widespread economic weakness. In such scenario it has been
estimated that industry-wide losses could reach USD 8.3 billion in
2012. Europe would be worst affected while all other regions would
not be able to escape losses.
IATA: Industry Outlook December 2011; Air Transport Market
Analysis October 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.
For the first six months of the current financial year 2011/2012
ending 30(th) September 2011, Emirates generated a net profit of
USD 225 million despite paying USD 1 billion more in fuel costs
compared with the same period last year and despite fluctuating
exchange rates. Net profit for the same period in the last business
year was USD 925 million. In addition, the company's revenues
increased by 15 per cent per annum to USD 8.3 billion over the same
time period. At the same time the airline posted strong business
growth both in terms of capacity on offer and traffic carried.
Capacity measured in Available Seat Kilometres (ASKM), grew by 8.2
per cent, whilst passenger traffic carried measured in Revenue
Passenger Kilometres (RPKM) was up 5.7 per cent. Therefore, the
Passenger Seat Factor declined slightly compared to the same period
of the last business year but sustained at a level of 79.3 per
cent.
Emirates' cash position on 30(th) September 2011 remained at
about USD 3.8 billion, almost the same level as on 31(st) March
2011 at the begin of the business year.
Emirates' fleet size as at the end of the first half-year of the
current business year was 161 aircraft including 17 A380 aircraft
and 93 B777 aircraft. Since the beginning of its current financial
year, the airline has received delivery of ten new widebody
aircraft, with another 13 new aircraft scheduled to be delivered
before the end of the financial year (31(st) March 2012). This new
capacity helped to expand the route network of the airline by four
additional destinations (Geneva, Copenhagen, Baghdad and St.
Petersburg) since April 2011. Furthermore, seven new route launches
(Rio de Janeiro, Buenos Aires, Harare, Lusaka, Dallas, Seattle and
Dublin) are planned to start in early 2012. Business figures for
the whole business year 2011/2012 are expected to be announced
sometime in May 2012.
Source: Emirates
4. Aircraft - A380
At the end of November 2011, the global A380 fleet consisted of
63 planes that were operated by Emirates (18 A380 aircraft),
Singapore Airlines (14), Qantas (11), Deutsche Lufthansa (8), Air
France (6), Korean Airways (5) and China Southern Airlines (1).
By the end of November 2011, Airbus had delivered 22 new A380
aircraft this year, of which five went to Korean Airways and four
each to Lufthansa and Qantas. In addition three A380 aircraft were
delivered to Singapore Airlines and Emirates each, two A380
aircraft to Air France and one to China Southern Airlines. However,
the A380 order backlog was still 180 units on November 30, 2011
Up to the end of November 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. In addition, Qatar Airways ordered five A380 aircraft
and Deutsche Lufthansa added a firm order of two additional A380
aircraft bringing its total order of that aircraft type to 17.
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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