AIRCRAFT maintenance provider SIA Engineering Company : S59 0% (SIAEC) recorded a 20.4 per cent fall in net profit to S$33.9 million for the six months ended Mar 31, 2023, from S$42.6 million the year before.

This is while revenue for the second half rose 43.4 per cent to S$433.8 million, from S$302.6 million a year earlier, as an increase in flight activities continued to drive demand for aircraft maintenance and overhaul services, said the mainboard-listed company in a regulatory filing on Monday (May 8) night.

While the recovery of flight activities following the lifting of pandemic-era border restrictions have led to a pick-up in demand for maintenance and overhaul services, the group saw expenditure rise by 39.9 per cent due to the progressive step-down of government wage support, as well as higher manpower and material costs.

Earnings per share stood at 3.02 Singapore cents for the six months, down from 3.79 cents the previous year.

A final dividend of 5.5 cents per share was declared for the full year, which will be paid on Aug 11, after books closure on Jul 27. No dividend was declared in the preceding year-ago period.

For the full year ended Mar 31, 2023, net profit fell 1.8 per cent to S$66.4 million, while revenue was up 40.6 per cent to S$796 million.

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Aviation traffic in Singapore and the Asia-Pacific continues to improve as airlines in the region see higher demand following the reopening of China’s borders and the removal of most remaining travel restrictions, noted the group.

But with flight recovery already close to 80 per cent, “the pace of recovery is expected to be slower than last year”, it warned.

“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,” said SIAEC.

Nevertheless, the group said it will continue to be vigilant in managing rising costs, as well as drive productivity and efficiency across its operations.

Shares of SIAEC closed flat at S$2.22 on Monday before the results were announced.