Shares in SIA Engineering have gained 23.76% year to date, as earnings have improved. For FY2017, the company reported earnings of $332.4 million, up from $176.6 million. The bottom line was lifted largely by a one-off gain of $141.6 million from an earlier sale of a 10% stake in a Hong Kong-based associate. Following the sale, SIA Engineering also received a special dividend of $36.4 million. That brought its total one-off gain for the recent financial year to $178 million. Revenue, however, was down 0.8% to $1.1 billion. The company warns of uncertainties and challenges from excess capacity and “aggressive pricing”.
SINGAPORE (July 3): SIA Engineering Co, the 77.5%-owned sub sidiary of flag carrier Singapore Airlines, is rewarding shareholders with a final payout of 14 cents. This brings its full-year payout to 18 cents for FY2017 ended March 31, up four cents from the previous year.
The counter will go ex-dividend on July 25. And the final and special dividends of nine cents and five cents, respectively, will be paid on Aug 8. Based on its June 27 closing price of $4.17, SIA Engineering’s final payout translates into a yield of 3.11%. That compares favourably with the yield of its parent, SIA, where dividends were recently cut from 45 cents to 20 cents for the full year. SIA now has a yield of 1.99%, based on its closing price of $10.09.
