SINGAPORE (May 12): SIA Engineering posted earnings of $332.4 million for the full year ended March, an 88.2% increase compared to earnings of $176.6 million a year ago.
This was largely attributable to a $141.6 million gain from the divestment of its 10% stake in Hong Kong Aero Engine Services (HAESL). In addition, SIA Engineering received a special dividend of $36.4 million from HAESL following the divestment of its 20% stake in Singapore Aero Engine Services.
Without the divestment, earnings would have been 2.6% lower at $172.0 million.
Group revenue fell marginally to $1.10 billion in FY2016-17, 0.8% lower than revenue of $1.11 a year ago. This was due to a decrease in fleet management revenue, partially mitigated by higher line maintenance revenue.
Expenditure increased by $23.8 million, or 2.4%, mainly due to increases in staff costs as a result of a provision made in the first quarter for the increase in the profit-linked component of staff remuneration arising from the gain on divestment of HAESL.
Share of profits of associated and joint venture companies increased by 2.4% to $96.5 million, on the back of higher contributions from the engine repair and overhaul centres.
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Cash and cash equivalents stood at $601.7 million as at March 31, 2017.
SIA Engineering’s Board has recommended a final ordinary dividend of 9.0 cents and a special dividend of 5.0 cents per share for FY2016-17.
Together with the interim dividend of 4.0 cents per share paid earlier, the total dividend payment for the year will be 18.0 cents per share.
In a filing to SGX, SIA Engineering says there remain growth opportunities in spite of global uncertainties and the challenges it faces in the maintenance, repair and overhaul sector from excess capacity and aggressive pricing.
The group adds that it continues to invest in strategic partnerships and advancing innovations, and maintain vigilance on costs.
Shares of SIA Engineering closed 2 cents lower at $3.93 on Friday.
