AIRCRAFT maintenance provider SIA Engineering Company (SIAEC) posted a net profit of S$26.9 million for its third quarter ended Dec 31, 2023, more than double the S$12.8 million in the corresponding period a year earlier.
Revenue for the quarter increased 40.2 per cent to S$291.7 million from S$208.1 million a year ago, reported the mainboard-listed company on Thursday (Feb 15).
As global flight activities steadily return to pre-pandemic levels, demand for aircraft maintenance, repair and overhaul (MRO) services “remained healthy” in the quarter, noted the group in a bourse filing.
The number of flights handled by its line maintenance unit in Singapore recovered to 94 per cent of pre-pandemic levels in December 2023, compared to 75 per cent a year earlier.
But while the increase in demand was broad-based, supply-chain challenges continued to affect turnaround times and output rates at the industry level.
The group’s expenditure increased to S$295.1 million, but at a lower rate of 33.8 per cent. This was largely due to higher manpower and material costs, said SIAEC.
Basic earnings per share stood at S$0.024, up from S$0.0114 the year before.
For the nine months ended December 2023, the group’s net profit rose to S$86.2 million, up 90.3 per cent from S$45.3 million in the year-ago period. Revenue also jumped 41.3 per cent to S$805.7 million from S$570.3 million a year earlier.
SIAEC noted that a third base maintenance hub was established in December last year in the Asia-Pacific region, after a 15-year lease agreement for two hangars at Sultan Abdul Aziz Shah Airport in Subang, Malaysia was signed.
During the quarter, the group also acquired an additional 10 per cent stake in Jamco Aero Design and Engineering, making it a 55 per cent-owned subsidiary.
“Through this acquisition, we are now in a better position to further develop our cabin maintenance and retrofit services,” SIAEC said.
The group also said that the outlook for global air travel continues to be strong.
“However, headwinds from macroeconomic and geopolitical uncertainties, along with tight labour market conditions, may exacerbate inflationary pressures and supply-chain issues, and impact our near-term operating margin,” it added.
SIAEC said it would continue to prioritise cost management and productivity to remain competitive.
“In line with our commitment to achieve sustainable business growth, we will continue to invest in growing our MRO capabilities and expanding our geographical presence, while nurturing our portfolio of partnerships and joint ventures.”
Shares of the company rose S$0.02 or 0.9 per cent to close at S$2.32 on Thursday, before the business update.
