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Sun 31 Aug 2003 04:00 AM

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Oasis flies back into the black

The Abu Dhabi-based big ticket leasing company returned to profit in the first half, following a loss for calendar year 2002.

Oasis International Leasing, the Abu Dhabi-based leasing company, has posted a net profit of Dhs3.4 million for the first six months of 2003. In comparison, the company posted a net loss of Dhs8.5 million for the whole of 2002.Mohammed Saif Al-Mazrouei, chairman, hailed the results, coming after a trying period for the aviation industry and the SARS crisis, and looked forward to further success.“Passenger volumes are up in those geographic areas hardest hit in the recent past, such as North America and Asia, and it is apparent that recent events have not reduced the desire or willingness of people to travel for business or pleasure,” said Al-Mazrouei.“A number of the more traditional ‘full service’ airlines have started the painful path to reconstruction and although there will continue to be casualties along the way, what will emerge is a leaner, fitter industry capable of sustaining growth and having the ability to weather economic cycles.“For leasing companies like us, that understand these dynamics and take a long term view, the opportunities are plenty.”Oasis was formed in 1997 as a UAE Offsets company. Its asset portfolio comprises 16 aircraft on long term leases to major regional and international flag carriers and a 50% stake in a bulk carrier ship, acquired in 2001.In the first half, the company added Dhs119 million to its ‘risk adjusted lease book’ (RALB), the risk adjusted present value of contracted future lease revenues. At the end of 2002, the RALB stood at Dhs831 million.Al-Mazrouei said that Oasis’ strategy is to continue to diversify into sectors such as shipping and infrastructure. “We will, therefore, be looking very closely at all the options available to us to build on our success and increase the available capital during the second half of the year,” he said.Oasis Leasing’s shareholder base includes Abu Dhabi Investment Company, BAE Systems, Gulf Investment Corporation and several insurance and investment companies. It has generated Dhs77 million in profits since its inception, of which Dhs40 million has been returned to shareholders in dividends.

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