SIA Engineering posts 63.1% rise in Q3 net profit of S$54m

SIA Engineering on Friday said its third-quarter net profit surged 63.1 per cent to S$54 million, helped by contributions from associated and joint-venture companies. 

This came despite revenue dipping 1.5 per cent to S$252.1 million, weighed down by a decline in airframe and line maintenance revenue. 

Expenditure also dropped 1.7 per cent year-on-year to S$236 million, primarily due to lower material expenses, resulting in a largely flat operating profit for the quarter. 

Better performance was seen from the group's associated and joint-venture companies instead. The share of profits from its associates tripled from S$9.6 million previously to S$27.8 million, while the share of profits from its joint-venture company was up 22.9 per cent to S$11.8 million. 

Basic earnings per share for the quarter ended Dec 31, 2019 stood at 4.82 Singapore cents, up from 2.95 cents in the preceding year. 

But in its outlook, SIA Engineering warned that the overall operating environment has become "increasingly challenging" because of the rapidly evolving novel coronavirus situation. 

The group said it will stay focused on implementing transformation initiatives to deliver improvements in operating performance.

SIA Engineering shares closed at S$2.61 on Friday before the results announcement, down 1.88 per cent.