SIA Engineering has reported profit after tax of $12.8 million for the 1QFY2022/23 ended June, 11.7% lower y-o-y.
The group reported revenue of $171.5 million for the quarter, up 36.9% y-o-y.
The increase was largely driven by the increase in line maintenance revenue due to the higher number of flights handled, says SIA Engineering in a July 25 Singapore Exchange (SGX) filing.
As at June 30, equity attributable to owners of the parent was $1,642.9 million, an increase of $32.2 million, or 2.0%, q-o-q.
Expenditure increased at about the same rate to $175.5 million, mainly due to the reduction in government wage support, says SIA Engineering. “Excluding the impact of government wage support, expenditure rose by 19.3%, significantly lower than the increase in revenue.”
The group recorded an operating loss of $4.0 million for the quarter, down 37.9% y-o-y. Excluding the impact of wage support, operating performance improved $16.4 million.
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Share of profits of associated and joint venture companies was $16.4 million, an increase of 10.8% y-o-y, as improvement in operating performance from increase in business volume more than offset the reduction in wage support, says SIA Engineering. “With government wage support ending in July 2022, we continue to exercise financial prudence."
Contribution from the engine and component segment was $17.8 million, while the airframe and line maintenance segment turned in a lower loss of $1.4 million.
Total assets at $1,875.8 million as of June 30 represented a $37.6 million, or 2.1%, increase from March 31.
The group’s cash balance was $602.6 million with no borrowings.
Basic earnings per share and net asset value per share as at June 30 were 1.14 cents and 146.4 cents respectively.
“During the quarter, strong recovery of international flight activities was experienced at Changi Airport as the number of flights handled doubled that of the same period last year and 42% higher than last quarter,” says SIA Engineering.
They add: “The number of flights handled in June 2022 reached 55% of pre-pandemic volume. The pick-up in flight activities saw an increase in demand for base maintenance checks as more aircraft returned to service and flying activities increased. Productivity achieved through our transformation initiatives improved our performance.”
The aviation industry experienced signs of a strong recovery in the last quarter, says SIA Engineering, as the lifting of travel restrictions in many countries led to a significant increase in flight activities.
Apart from North Asia, rising infections have not appeared to dampen the demand for international travel, they add.
Shares in SIA Engineering closed 1 cent higher, or 0.43% up, at $2.43 on July 25.
