SINGAPORE - SIA Engineering Company (SIAEC) recorded an 82.6 per cent increase in profit to $59.3 million for the six months ended Sept 30, 2023, from $32.5 million the year before.
Revenue rose 41.9 per cent to nearly $514 million in the first half of the year, from $362.2 million a year ago, on the back of a rebound in the travel sector, with flight activities growing post-pandemic, said the group in a bourse filing on Thursday.
This brings earnings per share to 5.28 Singapore cents, up from 2.89 Singapore cents the previous year.
An interim dividend of two Singapore cents per share was declared for the half year, which will be paid out on Nov 29. No dividend was declared in the preceding year-ago period.
Revenue was higher across all operating segments, the aircraft maintenance provider noted. The engine and component segment grew 67.5 per cent year on year to $115.4 million in the first half of the year. Meanwhile, revenue came in at $398.6 million for the airframe overhaul and line maintenance segment, up 35.9 per cent from the previous year.
Share of profits of associated and joint-venture companies rose 20.8 per cent year on year to $50 million in the half year. This was driven by an increase in demand for aircraft maintenance, repair and overhaul services (MRO) as flight activities recovered, SIAEC said.
“With robust traffic recovery in Changi Airport, the number of flights handled by our line maintenance unit in Singapore reached 87 per cent of pre-pandemic levels in the period, compared to 55 per cent a year ago.”
The volume of inductions at the group’s joint-venture engine and component shops also climbed in the first half despite supply chain disruption and parts shortages, it pointed out.
Meanwhile, expenditure rose 37.8 per cent to $513.9 million, due to an increase in manpower, materials and equipment costs, as well as a debt impairment provision for a customer that has suspended operations, it said.
SIAEC said that although the rebound in its performance is encouraging, headwinds still lie ahead – namely macroeconomic and geopolitical uncertainties, inflationary pressures, supply chain disruptions and a tight labour market.
“These could weigh on business demand and operating margin recovery in the near term,” it said. “As part of our ongoing efforts to stay competitive, we continue to drive productivity and efficiency through our continuous improvement programme while closely managing costs amid inflationary pressures.”
The group added that it will continue to seek organic and inorganic growth opportunities to broaden its customer base and strengthen its position as “a leading provider of MRO services in the Asia-Pacific region”.
Shares of SIAEC closed at $2.29 on Thursday, up 0.9 per cent or $0.02, before the results announcement. THE BUSINESS TIMES
