SIA Engineering Q2 net profit up 13.5% at S$40.4 million
Its rise in revenue outpaced that of its rise in expenditure; contributions from associated and joint-venture companies also increased
[SINGAPORE] SIA Engineering had a 13.5 per cent improvement in net profit to S$40.4 million for the quarter ended September, as the increase in revenue outpaced that in expenditure, and contributions from associated and joint-venture companies rose.
The Singapore Airlines (SIA) subsidiary offering maintenance, repair and overhaul (MRO) services reported in a regulatory filing on Tuesday (Nov 4) a 20.5 per cent increase in revenue to S$370.6 million, with the improvement being higher than the 18.9 per cent rise in expenditure.
The share of profits of associated and joint venture companies also rose, by 9.5 per year on year, to S$33.5 million.
SIA Engineering attributed the increase in expenditure mainly to higher costs of materials, manpower and IT system implementation, and a S$4 million impairment provision for an underperforming long-term contract. It did not name the customer for this contract in the filing.
An interim dividend of S$0.025 per share has been declared, and will be paid out on Nov 28. The interim dividend was S$0.02 per share for the year-ago period.
Basic earnings per share for the quarter was S$0.0361, up from S$0.0317 for the corresponding period of FY2025.
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Net asset value per share as at end-September was S$1.514 cent, marginally lower than S$1.539 as at end-March.
For the half year, the company posted a 21.1 per cent rise in net profit to S$83.3 million and a 26.5 per cent improvement in its top line to S$729 million, amid robust demand for MRO services.
Line maintenance in Singapore handled 2.6 per cent more flights than in the same period last year, with an uptick in demand also recorded across its line maintenance network. Base maintenance also benefited from an increase in heavy maintenance checks.
SIA Engineering closed S$0.08 or 2.3 per cent down at S$3.47 on Tuesday, before its financial results were published.
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