SIA Engineering Company (SIAEC) reported a net profit of $33.2 million, $6.2 million higher, or 23% up y-o-y, for the 1QFY2025 ended June 30.
Group revenue rose by 2.6% y-o-y to $268.7 million.
Operating profit rose to $1.0 million, $0.6 million higher, or 150% up y-o-y, as revenue growth outpaced the higher expenditure costs.
Share of profits from associated and joint venture companies improved by $6.1 million to $28.0 million for the quarter.
Share of profits from both the engine and component segment and the airframe and line maintenance segment increased y-o-y, by $5.7 million and $0.4 million, respectively.
Earnings per share (EPS) stood at 2.95 cents on a diluted basis.
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In its update, the group noted that demand for maintenance, repair and overhaul services (MRO) remained “healthy” during the quarter. The number of flights handled by SIAEC’s line maintenance in Singapore grew by 11.5% y-o-y. Flight recovery at the end of June stood at 95% of pre-pandemic levels compared to 84% a year ago.
The group’s base maintenance segment saw fewer aircraft checks being completed during the quarter as there were more checks for older generation aircraft that had heavier work content, thus necessitating longer hangar time. The longer lead times taken to secure spare parts from supply chain constraints also lengthened the duration of certain checks, SIAEC adds.
Looking ahead, the group sees demand for MRO services continuing to look “healthy”. This is as the level of flight activity remains on an upward trajectory. However, tight labour market, supply chain issues and elevated costs remain concerns.
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As at June 30, equity attributable to owners of the parent was $1.72 billion, 2.1% higher q-o-q, mainly due to profits earned in the 1QFY2025.
The group’s total assets as at the same period stood at $2.14 billion, 2.4% higher q-o-q.
Shares in SIAEC closed 2 cents lower or 0.87% down at $2.29 on July 26.
