SIA Engineering posts fall in profit, lowers dividend payout

SINGAPORE - Net profit of SIA Engineering Group declined by about 36.5 per cent to $41.4 million for the fourth quarter, as revenue fell 11.3 per cent to $276.0 million due to lower airframe and component overhaul revenue.

For the year ended March 31, net profit dropped 31 per cent to $183.3 million.

This was on the back of a 4.9 per cent decline in revenue to $1.12 billion, as airframe and component overhaul revenue declined with fewer heavy checks. This was partly mitigated by higher fleet management revenue, it said.

Earnings per share was 3.69 cents for the fourth quarter, down from 5.85 cents a year ago.

Net asset value per share at March 31 was $1.181, down from $1.22 cents a year back.

A final dividend of 8.5 cents a share was proposed. Together with the interim dividend of six cents per share paid earlier, the total dividend payment for this financial year is 14.5 cents per share.

In contrast, the total payout for the previous financial year amounted to 25 cents a share.

The group said the operating environment for the maintenance, repair and operations (MRO) industry "remains challenging".

"Advancements in the newer generation engines have improved their reliability while the older generation engines are being phased out. These developments will continue to result in a reduction in engine shop visits in the next few years."

It added it has been taking initiatives to position itself for the future. This includes the fleet management joint venture with Boeing which will incorporate a part of its fleet management business. The joint venture is on track for commencing operations in the financial year.