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SIA Engineering posted a profit attributable to owners of the parent of $44.5 million, or 3.96 cents a share, for the 2Q ended Sept. This was $2.4 million, or 5.7%, higher than the same quarter last year.
Revenue fell 6.7% to $266 million, with lower airframe and component overhaul and fleet management revenue, partially mitigated by higher line maintenance revenue. Expenditure at $239 million was $30.3 million, or 11.3%, lower, owing mainly to a drop in subcontract, staff and material costs. As a result, operating profit improved $ 11.1 million, or 69.8%, to $27 million.
Share of profits from associated and joint-venture companies was $18.7 million and to 10.4 million respectively. Contributions from the engine repair and overhaul centres at $11.7 million and $8.3 million respectively.
The cash balance of the group was $406.2 million, down 12.4% y-o-y. In its outlook, SIA Engineering says the operating environment remains challenging.
“Lower work content and longer check intervals of newer generation aircraft will continue to affect our business. Our efforts to strengthen efficiencies and manage costs have helped improve the performance of the heavy maintenance and line maintenance businesses,” the group adds.
SIA Engineering has declared an interim dividend of six cents a share.
This article first appeared in The Edge Singapore Market Report.
Didn’t make it to the AGM? Find out the 3 Things I Learned from SIA Engineering’s AGM 2015.