SINGAPORE (Nov 3): SIA Engineering (SIAEC) announced that 2Q earnings rose 7.3% to $38.1 million from a year ago.
Revenue for the quarter was $274.7 million, an increase of $9.9 million or 3.7% as the growth in airframe and component overhaul and line maintenance revenue was partially offset by the decrease in fleet management revenue.
Expenditure at $255.2 million rose by $14.9 million or 6.2%, mainly due to higher staff costs, an exchange loss of $1.0 million against an exchange gain of $3.8 million in the corresponding quarter last year, and a provision for impairment of trade debtors of $1.6 million compared to a writeback of provision of $0.6 million in the same quarter last year. The resulting operating profit of $19.5 million was $5.0 million or 20.4% lower.
Share of profits from associated and joint venture companies of $22.9 million was higher by $5.7 million or 33.1%.
As at Sept 30, cash and cash equivalents stood at $467.2 million.
For the half year, SIAEC posted earnings of $74.3 million, 68.2% lower.
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The group has declared an interim dividend of 4.0 cents per share, which will be paid out on Nov 28.
On its outlook, SIAEC says the maintenance, repair and operations (MRO) industry is faced with challenges of new-generation aircraft and engines that require less frequent maintenance and lighter work content.
The group will continue to invest in new technologies and pursue initiatives to enhance productivity and manage its costs, while being focused on building capabilities for new-generation aircraft and engines and aligning our portfolio of joint ventures to tap new opportunities in the changing business environment.
Shares in SIAEC closed $3.26 cents on Friday.
