SIA Engineering Company (SIAEC) reported a net profit of $68.8 million, $9.5 million higher, or 16% up y-o-y, for the 1HFY2025 ended Sept 30.
For 2QFY2025, the group’s net profit stood at $35.6 million, up 10.2% y-o-y.
Group revenue for 1HFY2025 rose by 12.1% y-o-y to $576.2 million.
Operating profit rose to $3.4 million, $3.3 million higher, as revenue growth outpaced higher expenditure costs for the period.
Share of profits from associated and joint venture companies improved by $8.6 million, or 17.2% higher y-o-y, to $58.6 million for 1HFY2025.
Share of profits from both the engine and component segment and the airframe and line maintenance segment increased y-o-y, by $7.7 million and $0.9 million, respectively.
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As at Sept 30, earnings per share (EPS) stood at 6.13 cents on a diluted basis.
In its update, the group noted that demand for maintenance, repair and overhaul services (MRO) remained “healthy” during the first half of the financial year, as all operating segments recorded higher revenue.
For the same period, the number of flights handled by SIAEC’s line maintenance in Singapore grew by 9% y-o-y. The number of transits handled stood at 95% of pre-pandemic volume, compared to 89% a year ago.
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According to the group, fewer aircraft checks were completed at the group’s base maintenance’s Singapore hangars 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 following supply chain constraints that led to longer lead times to obtain relevant aircraft spares, SIAEC adds.
Moving forward, the group sees demand for MRO services continuing to look “healthy”. That said, supply chain constraints, rising costs, tight manpower supply and heightened geopolitical tensions remain concerns.
As at Sept 30, equity attributable to owners of the parent was $1.65 billion, 2.4% lower from March 31, mainly due to the payment of final dividend for the last financial year and a decrease in the foreign currency translation reserve. This was partially offset by profits earned during the period.
The group’s total assets as at the same period stood at $2.01 billion, 3.6% lower from March 31.
The group has also since declared an interim dividend of 2.0 cents per share, which is expected to be paid on Nov 29.
Shares in SIAEC closed 4 cents higher, or 1.63% up, at $2.49 on Nov 5.
