As business segments continue to be adversely impacted by the Covid-19 pandemic, SIA Engineering has reported net profit of $7.7 million for the 3QFY2020/2021 ended December, lower 85.7% lower y-o-y.
The figure was bolstered by grants from government support schemes, most significantly, the jobs support scheme (JSS).
Without the support, the group would have reported a loss of $44.7 million for the 3QFY2020/2021.
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Basic earnings per share (EPS) and net asset value (NAV) per share stood 0.69 cents and 135.8 cents per share respectively as at Dec 31, 2020.
Revenue during the quarter fell 58.5% y-o-y to $147.5 million due to low flight activities and the reduction in the number of active aircraft. The lower revenue came despite 56.1% y-o-y lower group expenditure.
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Consequently, the group’s operating profit plunged 93.2% y-o-y to $1.1 million, compared to the $16.1 million a year ago.
Share of profits of associated and joint venture companies fell 68.9% y-o-y to $12.3 million, amid lower contributions due to the reduction in flying hours and extended maintenance intervals.
During the quarter, an $11.8 million impairment charge was made on the group’s investment in an engine programme.
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Equity attributable to owners of the parent stood 6.5% lower y-o-y at $1.52 billion as at Dec 31, 2020. This was due to a reduction in the foreign currency translation reserve, the payment of final dividend for FY2019/2020 and losses incurred in the first nine months.
The group recorded 10.6% lower total assets y-o-y at $1.79 billion as at Dec 31, 2020, and continues to maintain a strong cash balance of $519 million with low borrowings.
Management says through the quarter, they have remained “disciplined” in managing their costs, with measures such as releasing contract staff, salary cuts and furlough.
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It adds that it will remain “nimble and adaptable” as the JSS tapers down to 50% from 75% in the next quarter.
“We are accelerating Phase 2 Transformation efforts to boost our competitiveness in the post-Covid-19 maintenance, repair and operation (MRO) landscape with investments in digitalisation, technology and automation,” it says.
“The recently launched digitalisation initiative (SMART-MX) provides our Line Maintenance engineers with immediate access to information and decision support which improves efficiency. At the same time, we are focusing on proliferating Lean process improvements across the company, upskilling our staff to broaden their expertise, and developing a culture of continuous improvement,” it adds.
Shares in SIA Engineering closed 3 cents lower or 1.6% down at $1.90 on Jan 29.
