SIA Engineering posts net profit in Q1

SIA Engineering announced it recorded revenue of S$125.3 million for the first quarter of FY2021-22, S$6.8 million higher year-on-year (+5.7 percent) largely driven by higher flight activities. Group expenditure at S$128.2 million was slightly higher year-on-year (+0.9 percent) as cost management measures partially offset lower grants from government support schemes. Consequently, the group incurred a lower operating loss of S$2.9 million compared to the operating loss of S$8.6 million in the same quarter last year. Share of profits of associated and joint venture companies was S$14.8 million, an increase of S$1.1 million (+8 percent) year-on-year. Contributions from the engine and component segment decreased S$1.1 million (-5.7 percent) to S$18.3 million, while the airframe and line maintenance segment turned in a lower loss of S$3.5 million, an improvement of S$2.2 million year-on-year. Consequently, group net profit increased 35.5 percent year-on-year to S$14.5 million for the quarter ended 30 June 2021. The number of flights handled continues to increase but the pace of recovery slowed during the quarter as rising cases of the more infectious variant of COVID-19 resulted in tightening of border restrictions. Against the low base last year, the number of flights handled at the company’s Singapore base during the quarter was 97 percent higher year-on-year. However, as compared to last quarter, the increase was only 13 percent, with the increase largely coming from the base carriers at Changi Airport. Flight activities at overseas line maintenance companies experienced similar slow recovery over the last quarter. At base maintenance facilities, more aircraft maintenance checks were secured from active marketing efforts. However, these checks were of lighter work content as compared to the checks performed in the same period last year. Work volume for fleet management business and at joint venture companies remained low due to slow pace of recovery in flight activities of client airlines. In line with announced plans, the commenced operating  engine services under the newly formed Engine Services Division. “Amid the encouraging pace of global vaccination efforts, countries with high vaccination levels are exploring the easing of travel restrictions. The trajectory for a sustained recovery remains uncertain and rests on the global vaccination and infection rates as well as border restrictions. The uptick in flight volume from home-based carriers has been encouraging but any meaningful increase in flight frequencies is not expected to materialise in the short term,” the company said. SIA Engineering is “pressing ahead with its transformation efforts to emerge stronger in the post-COVID-19 future. This will complement efforts in reshaping the portfolio of subsidiaries and joint ventures to strengthen its ability to build new capabilities for existing and new generation aircraft and components amidst a changing business environment. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]