SINGAPORE (May 10): SIA Engineering reported 4Q19 earnings of $49.3 million, 12.3% lower compared to 4Q18 earnings of $56.2 million.
Excluding the $15 million gain on divestment of Asian Compressor Technology Services (ACTS), 4Q19 earnings would have been 19.7% higher
Revenue for the quarter came in at $256.0 million, 7.4% lesser than $276.4 million a year ago, mainly from lower fleet management activities.
Line maintenance revenue was also lower, mainly due to the loss in revenue contribution from a line maintenance subsidiary divested in the third quarter of FY18-19.
Total expenditure decreased 7.3% to $236.6 million, largely due to decreases in material and subcontract costs.
Hence, operating profit was 8.5% lower at $19.4 million, from $21.2 million last year.
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As at end March, the group’s cash and cash equivalents stood at $521.6 million.
For FY19, earnings came in at $160.9 million, 13.9% lower than $186.8 million in FY18.
The group is recommending a final ordinary dividend of 8 cents per share, which will be payable on Aug 8.
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Including the interim dividend of 3 cents per share paid earlier, the total dividend payment for FY19 will be 11 cents per share.
In its outlook statement, SIA Engineering noted the MRO operating environment will remain challenging and revenue will likely be impacted by the unforeseen grounding of customers’ aircraft.
In its results filing on Friday, the group says, “Our Transformation journey is gaining traction with some initiatives generating productivity gains and creating capacity for growth. More of such initiatives will be progressively implemented over the next three years. We will also continue with our efforts to innovate and adopt technologies to complement these initiatives.”
The group says it will also leverage its portfolio of JVs with strategic partners, diversified service offerings and strong balance sheet to pursue suitable opportunities for sustainable growth.
Shares in SIA Engineering closed at $2.48 on Friday.
