Oasis Leasing grows lease book again

The figures, released by the company, show its Risk Adjusted Lease Book (RALB) - the present value of contracted future lease revenues - rose by AED 33m to AED 828m, an increase of 58% since the company began reporting in 1998.

Despite extremely difficult trading conditions, in the wake of the events of September 11, revenue amounted to AED 97.221m and net profit was AED 5.635m for the first six months of the year.

"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, Chairman, Oasis Leasing.

"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.

"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 MD 82 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.

"These developments will enable us to exploit the undoubted opportunities that will become available as the current cycle develops.

"The future prospects are very positive. Oasis is a young company operating in a long-term business. We have produced a strong performance to date, very much in line with expectations, and the opportunity to grow into a world class player is in front of us," Al-Mazrouei said.

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 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. The overall aim is to achieve sustainable profitability, coupled with growth.

Since its creation five years ago, Oasis Leasing has generated AED 685m in revenues from leasing and AED 88m in profits, of which AED 9m 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% stake in a capesize dry-bulk vessel.

The company plans to build its asset and risk profile from its current US $472 million value to US $1.2 billion with targeted moves into shipping, infrastructure and power plant financing.