SIA Engineering posts 1.7% fall in half-year net profit

SIA Engineering Company reported net profit of S$81.9 million for its half-year ending on 30 September, down 1.7 per cent from a year earlier. In its 3 November filing, the group attributed the decline to smaller contributions from associates and joint ventures, reduced interest income and increases in financing costs and taxes.

Revenue totalled S$658.6 million, a decline of 9.7 per cent, which the company linked to lower materials revenue. Excluding materials, revenue would have risen 1.6 per cent. Earnings per share slipped to S$0.0732 from S$0.0745. The interim dividend of S$0.025 per share is payable on 27 November.

Profit contributions from associates and joint ventures dropped 10.7 per cent to S$63.7 million. SIA Engineering cited spending to expand capacity and capabilities at an engine joint venture, partly offset by improved output and margins elsewhere among its associates. It expects those expansion costs to ease in the next financial year.

Operating profit nevertheless doubled to S$25.7 million, supported by maintenance, repair and overhaul demand and smaller losses at start-up subsidiaries, the company said. Expenditure declined 11.6 per cent to S$623.9 million, partly because an impairment charge booked a year earlier did not recur.

The group said first-half maintenance demand remained steady, with its Singapore line-maintenance operations handling 3.3 per cent more flights than a year earlier. In Malaysia, its Base Maintenance Malaysia subsidiary opened a facility and its first hangar in May, then completed its first aircraft maintenance check for Air India in July.