SIA Engineering Company (SIAEC) S59 has reported net profit of $12.8 million for the 3QFY2022/2023 ended Dec 31, 2022, 61.4% lower than the net profit of $33.2 million.
Excluding the wage support and one-time write-back of tax provision, the group’s performance would have been up from the loss of $7 million, or a $19.8 million improvement y-o-y.
Net profit for the 9MFY2022/2023 fell by 22.2% y-o-y to $45.3 million.
3QFY2022/2023 revenue increased by 48.6% y-o-y to $208.1 million with revenue growth across all segments as flight activities continued to recover.
Operating loss stood at $12.5 million, down from the loss of $7.8 million the year before as group expenditure rose at a higher rate due to the absence of wage support. This is the first quarter that the group received no wage support since the pandemic. That said, the group’s operating performance improved y-o-y excluding the impact of wage support and exchange loss due to the weakening of the USD against the SGD.
Share of profits of associated and joint venture companies, net of tax plunged 51.9% y-o-y to $19.3 million.
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Earnings per share (EPS) for the 3QFY2022/2023 stood at $1.14.
9MFY2022/2023 revenue grew by 41.3% y-o-y to $570.3 million.
Operating loss deepened to $23.3 million, down from $14.5 million previously.
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Share of profits of associated and joint venture companies, net of tax fell by 9.3% y-o-y to $60.7 million.
EPS for the period stood at $4.02.
The number of flights handed in the quarter by SIAEC’s line maintenance unit in Singapore was 71% of its pre-pandemic volume. Work demand for the rest of its business units also picked up in line with the recovery of the aviation industry.
“The reopening of China’s borders is a positive development for a faster and full recovery of the aviation industry. However, challenges remain in the recovery path with risk of global recession, inflationary pressures, supply-chain disruptions and geopolitical uncertainties,” says the group in its business update.
“As the group ramps up resources in anticipation of further recovery, we will closely manage the rising costs and continue to scale up our efforts in automation and Lean practice adoption. At the same time, we will seize opportunities to broaden our customer base, develop new capabilities and expand our geographical presence through acquisitions and partnerships to achieve sustainable business growth,” it adds.
Shares in SIAEC closed 3 cents lower or 1.22% down at $2.43 on Feb 17.
