The Irish arm of aircraft lessor, BOC Aviation last year recorded pre-tax losses of €313m due to the write-down of 15 of the company's aircraft based in Russia.
New accounts filed by the Dublin based Boc Aviation (Ireland) Ltd show that the business incurred a gross $571.5m write down from the 15 aircraft based in Russia.
The write-down was partially offset by a $151m gain from maintenance reserves and security deposits in relation to those aircraft resulting in a net write down of $420.5m.
A note attached to the accounts states that the company has made claims under certain insurance policies related to the aircraft in Russia and has commenced litigation in the Irish High Court against the insurers under certain parts of those policies.
The accounts explain that 15 of the firm’s aircraft based in Russia had their leases terminated in March 2022 in compliance with sanctions imposed on Russia by several nations arising from its invasion of Ukraine.
The note states that "it is unlikely to be able to recover those aircraft from Russia in the foreseeable future, if ever".
The firm is a subsidiary of a public quoted firm based in Singapore and the pre-tax loss of $347.3m last year followed a pre-tax profit of $144.77m in the prior year - a negative swing of $491m.
The firm’s income increased by 51pc from $412.38m to $623.2m mainly due to the sale of aircraft and income arising from termination of leases.
Lease rental income dipped from $396.05m to $383.55m.
The loss also takes account ofnon-cash depreciation costs of $172m.
The firm recorded a post tax loss of $303.89m after booking a corporation tax credit of $43.4m.
The value of the firm's total assets declined from $5.2bn to $4.9bn mainly due to the write-down of the 15 Russian aircraft.
At the end of last December, the firm had an owned and managed fleet of 131 aircraft made up of 98 owned aircraft and 33 in managed aircraft.
The firm last year recorded profits of $62.76m from $471.04m realised from the sale of aircraft.
The firm employs nine here and staff costs last year remained at the same level at $2.73m.
Directors’ pay last year declined to $1.09m from $1.75m in 2021.
The firm's cash funds last year declined from $204.27m to $183.64m.
The business paid out no dividend last year after paying out a dividend of $66m in 2021.
A note attached to the accounts states that subsequent to year end, the firm terminated the lease for one lessee that filed for bankruptcy protection and is in the midst of recovering the aircraft.
Reporting by Gordon Deegan
