SIA Engineering Company (SIAEC) S59 has reported net profit of $26.9 million for the 3QFY2023/2024 ended Dec 31, 2023, more than double its net profit of $12.8 million in the corresponding period last year.
Net profit for the 9MFY2022/2023 also increased 90.3% y-o-y to $86.2 million.
Revenue for 3QFY2023/2024 improved 40.2% y-o-y to $291.7 million while group expenditure rose at a lower rate of 33.8% y-o-y to $295.1 million mainly due to an increase in manpower costs and material costs.
As revenue growth was higher than the rise in expenditure, SIAEC incurred a lower operating loss of $3.4 million compared to the operating loss of $12.5 million 3QFY2022/2023.
Excluding the impact of foreign exchange losses, the company would have achieved an operating profit of $0.5 million in 3QFY2023/2024.
For the quarter, SIAEC’s share of profits from associated and joint venture companies net of tax increased 23.3% y-o-y to $23.8 million.
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Earnings per share (EPS) for the 3QFY2023/2024 stood at $2.39.
For the 9MFY2023/2024, revenue grew by 41.3% y-o-y to $805.7 million while operating losses decreased to $3.3 million, up from $23.3 million previously. The share of profits from associated and joint venture companies net of tax also increased 21.6% y-o-y to $73.8 million.
EPS for the 9MFY2023/2024 period stood at $7.64.
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The number of flights handled in the quarter by SIAEC’s line maintenance unit in Singapore was 94% of its pre-pandemic volume in December 2023 compared to 75% a year ago. Although the increase in demand was broad-based, at the industry level, supply chain challenges have continued to affect turnaround times and output rates.
“Global air travel is projected to surpass pre-Covid levels in 2024 as Asia-Pacific makes a full recovery, which in turn is expected to drive demand for aircraft maintenance, repair and overhaul (MRO) services. 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,” says the company in its business update.
“To ensure that we remain competitive, we continue to prioritise cost management and drive productivity through our continuous improvement programme. As part of this, we will further deepen lean and digitalisation to enhance the efficiency and core competencies of our workforce as well as infuse a mindset of continuous improvement among them,” adds SIAEC.
Shares in SIAEC closed 2 cents higher or 0.87% up at $2.32 on Feb 15.
