SIA Engineering posts 6.7% rise in Q3 earnings

SIA Engineering posted a 6.7 per cent increase in profits to S$49.4 million for the three months to Dec 31 last year.
SIA Engineering posted a 6.7 per cent increase in profits to S$49.4 million for the three months to Dec 31 last year.PHOTO: ST FILE

SINGAPORE - An increase in share of profits from associated and joint venture companies, boosted by one-time gains, lifted third-quarter earnings at SIA Engineering Company.

The aircraft maintenance and repair firm said on Monday that net profit jumped 6.7 per cent to S$49.4 million for the three months to Dec 31 last year, compared with the S$46.3 million in the same period a year ago.

Revenue rose 3.7 per cent to S$275.2 million, on the back of higher fleet management and line maintenance.

Expenditure grew at a lower rate of 2.2 per cent to S$246.2 million, with increases in material and staff costs mitigated by decreases in other expenses. As a result, operating profit of S$29 million was 19.3 per cent higher than the same quarter last year.

Share of profits from associated and joint venture companies surged 31.2 per cent to S$33.2 million, thanks to one-time restructuring gains, including profit from the sale of facilities.

Earnings per share came in at 4.4 cents, up on the 4.13 cents previously, while net asset per value stood at 131.3 as at Dec 31, higher than the 118.1 cents as at March 31.

"The operating conditions for the MRO (maintenance, repair and operations) industry remain challenging and the company will continue its efforts to control costs and strengthen efficiencies," said the engineering arm of Singapore Airlines in a statement.

"Reduced shop visits and lower work content will impact the performance of the engine shops, resulting in declining contributions from the associated and joint venture companies."

But the firm also said that the ongoing initiatives to streamline and rationalise its core businesses will "enhance the group's overall competitiveness and service offerings going forward".

"Supported by a strong balance sheet, the group will continue to pursue strategic partnerships with leading industry players to capitalise on emerging opportunities in the region."

SIA Engineering shares closed five cents or 1.4 per cent lower at S$3.41 on Monday, before the results were released.