First-quarter net profit at Singapore Airlines' engineering arm jumped almost five-fold to $198.4 million, mainly due to gains from the divestment of subsidiaries.
In the three months to June 30, SIA Engineering made a $141.6 million gain from the divestment of its 10 per cent stake in Hong Kong Aero Engine Services (HAESL) and Hong Kong Aircraft Engineering Company.
Another $36.4 million came in the form of a special dividend following the divestment of HAESL's 20 per cent stake in Singapore Aero Engine Services.
At the operating level, the firm reported a $1.6 million loss in the quarter, compared with a $20.9 million profit last year.
Revenue fell by 2.1 per cent to $271.6 million while expenditure increased by 6.6 per cent year-on- year to $273.2 million.
Share of profits of associated and joint venture companies was $20.7 million, a decrease of $3.3 million or 13.8 per cent from the corresponding quarter last year.
AT A GLANCE
$271.6 million (-2.1%)
$198.4 million (+380.4%)
Earnings per share for the quarter rose from 3.68 cents last year to 17.67 cents, while net asset value per share inched up to 137.9 cents, compared with 132.4 cents as at March 31.
SIA Engineering said yesterday that the challenging operating environment is expected to persist, amid growing global economic uncertainties.
Backed by a strong balance sheet, the firm will continue to invest in capabilities to handle new-generation aircraft and in innovation initiatives and new technologies to enhance customers' fleet efficiencies and reliability.
The firm is also working to boost productivity and improve processes.
With ongoing efforts to pursue strategic partnerships, the group is well-positioned to seize long-term growth opportunities in the region, SIA Engineering said.