SIA Engineering S59 has reported a revenue of $433.8 million for 2HFY2023 ended March, up 43.4% y-o-y, as the increase in flight activities drove higher demand for maintenance services.
However, manpower and materials costs rose in tandem with revenue. In addition, a one-time writeback of tax provisions last year wasn't repeated.
As such, the company's earnings for 2HFY2023 was down 20.4% y-o-y to $33.9 million.
For the full year, earnings was down 1.8% over FY2022 to $66.4 million, while revenue was up 40.6% y-o-y to $796 million.
The company plans to resume a dividend payout, giving 5.5 cents each - the first since the pandemic.
Now, with flight recovery already close to 80%, SIA Engineering warns that the pace of recovery going forward is expected to be slower than last year.
"In addition, the interplay of geopolitical tensions, a looming economic slowdown in many major economies, supply chain disruptions and persistent high inflation could pose risks to the continued recovery, with downstream impact on demand for maintenance, repairs and overhaul," the company says.
SIA Engineering closed unchanged at $2.22 on May 8, down 7.5% year to date.
