SIA Engineering Q2 earnings rise 5.7% despite revenue drop

Lower expenses lifted earnings for aircraft maintenance firm SIA Engineering in the second quarter even as turnover took a hit from lower airframe and component overhaul and fleet management revenue.

The group's Q2 net profit rose 5.7 per cent year-on-year to S$44.5 million for the three months ended Sept 30, it said in a Singapore Exchange filing on Monday.

This was despite a 6.7 per cent drop in the topline to S$266.0 million from the previous year. It said it had reduced expenditure by 11.3 per cent to S$239.0 million, mainly by cutting subcontract, staff and material costs.

It warned of a challenging operating environment, saying in a statement that "lower work content and longer check intervals of newer-generation aircraft will continue to impact our business".

The group added that it would "be vigilant to pursue strategic partnerships and long-term growth opportunities in the region".

Earnings per share for Q2 grew to 3.96 Singapore cents from 3.75 cents the previous year. Net asset value inched up to S$1.194 as at Sept 30 from S$1.181 as at March 31 this year.

For the first half, net profit tumbled 10.3 per cent to S$85.8 million on the back of a 6.2 per cent slide in revenue to S$543.3 million year-on-year.

SIA Engineering shares lost six cents to close at S$3.93 on Monday before the results were released.