SIAEC's Q4 bottom line strengthened by divestment

SIA Engineering Company (SIAEC) reported a net profit of S$55 million for the fourth quarter ended March 31, up nearly 20 per cent year-on-year.

Profit for the quarter was boosted by a S$14.3 million gain as the group divested its shares in associated company Asian Compressor Technology Services Company.

This was despite a 6.4 per cent slide in revenue to S$276.4 million due to lower airframe and component overhaul and fleet management revenue.

Earnings per share came to 4.91 Singapore cents, up from 4.09 cents previously.

During the quarter under review, share of profits of associated and joint venture companies totalled S$25 million, or 7.4 per cent lower, due to lower share of profits from the engine and component centres.

For the full year, net profit came to S$184.1 million, or 44.6 per cent lower year-on-year, as the previous year included a gain from the divestment of its 10 per cent stake in Hong Kong Aero Engine Services to Rolls-Royce Overseas Holdings. Revenue was 0.8 per cent lower at S$1.09 billion, mainly from lower fleet management revenue.

The board is recommending a final dividend of nine Singapore cents per share for the financial year, payable on Aug 7.

Shares in SIAEC closed at S$3.33, up two Singapore cents, before its results were announced.