AIRCRAFT maintenance provider SIA Engineering (SIAEC) on Tuesday (Nov 5) reported a net profit of S$35.6 million for the quarter ended Sep 30, up 10.2 per cent from S$32.3 million in the corresponding year-ago period.
This translates to earnings per share of S$0.0317, from S$0.0287 year on year.
Revenue for the quarter was S$307.5 million, up 22 per cent from S$252.1 million.
The group declared an interim dividend per share of S$0.02, unchanged from a year ago. It will be paid out on Nov 29.
For the quarter, the group’s operating profit was S$2.4 million, reversing from an operating loss of about S$300,000 in Q2 FY2024. The share of profits from associated and joint venture companies came in at S$30.6 million, gaining 8.9 per cent from S$28.1 million.
On a half-year basis, net profit was S$68.8 million, 15.9 per cent higher than S$59.3 million in the corresponding year-ago period. Revenue for the first half was S$576.2 million, up 12.1 per cent from S$514 million yoy.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
This translated to earnings per share of S$0.0613 in H1, up from S$0.0528 yoy.
Commenting on its half-year performance, the group noted that demand for maintenance, repair and overhaul (MRO) services remained healthy in this period, with all operating segments reporting higher revenue.
In addition, group expenditure for the six months increased at a lower rate of 11.5 per cent to S$572.8 million, mainly due to higher material costs, manpower costs and repair costs and an exchange loss, a turnaround from the exchange gain recorded in the comparative period the year before.
The group thus posted an operating profit of S$3.4 million for the first half, up by S$3.3 million from a year ago. Share of profits from associated and joint venture companies increased by 17.2 per cent on-year to S$58.6 million in H1 FY2025.
The group noted that line maintenance demand across its network continued to increase on-year. It handled 9 per cent more flights in Singapore in this half, compared to the same period a year ago.
However, fewer aircraft checks were completed in its Singapore hangars in the six months, due to a higher mix of legacy aircraft checks with heavier work content, as well as cabin refurbishments.
“The duration of some aircraft checks was also extended because of supply-chain constraints that led to longer lead times to obtain relevant aircraft spares,” said SIAEC.
Meanwhile, the first of two hangars in Subang, Malaysia, is scheduled to begin operations in the second half of 2025.
“The increase in hangar capacity is timely, as SIAEC has been appointed to perform the cabin retrofit of Singapore Airlines’ A350 long-haul fleet starting from 2026,” said the aircraft maintenance group.
While the company is contending with challenges including supply-chain issues and elevated cost, MRO demand continues to be driven by an increase in air travel, said SIAEC.
“In addition, the delays in the delivery of new aircraft have also resulted in airlines keeping older aircraft in operation and needing MRO support for those aircraft,” it said.
The group has taken measures to mitigate ongoing supply-chain challenges, and its network of engine and component shops was able to meet the increase in demand and generated more output on-year, said SIAEC.
It expanded engine shops in Singapore, and in June 2024, established a joint venture with American-Irish power manufacturer Eaton to provide MRO services for Eaton-manufactured aircraft components in the venture’s new Malaysian facility.
The facility is expected to be fully operational by early 2026.
The group anticipates that it will incur associated start-up and development costs over the next two to three years due to investments for business expansion.
SIAEC shares ended S$0.04 or 1.6 per cent higher at S$2.49, before the announcement.
