SINGAPORE (Nov 1): SIA Engineering Company (SIAEC) saw a near tripling of earnings to $233.9 million in 1H17 from $85.8 million a year ago (1H16), lifted by one-off gains.

SIAEC recorded a $141.6 million gain from the divestment of its 10% stake in Hong Kong Aero Engine Services to Rolls-Royce Overseas Holdings and Hong Kong Aircraft Engineering Company, and a special dividend of $36.4 million from HAESL for the divestment of its 20% stake in Singapore Aero Engine Services to Rolls-Royce Singapore.

Revenue for the half year fell 1.3% to $536.4 million on lower fleet management revenue, which was partially mitigated by higher line maintenance revenue.

The gains also contributed to an increase in provision for the profit-linked component of its staff renumeration which partially led to a 3.7% increase in expenditure to $513.5 million.

Share of profits of associated and joint venture companies fell by 11.2% to $37.9 million as contributions from its engine repair and overhaul centres fell 5.2% to $21.7 million.

Excluding the one-off gain and the subsequent provisions, SIAEC said operating profit would have fallen 7.7% to $44.2 million while earnings would have fallen 14.3% to $73.5 million.

For the quarter to Sept, earnings declined 20.2% to $35.5 million as revenue fell by 0.5% to $264.8 million.

During the quarter, SIAEC completed the merger of Singapore Aero Engine Services and International Engine Component Overhaul. Heavy Maintenance Singapore Services, the company’s joint venture with Airbus, was also incorporated on Oct 28 and is expected to start operations in FY17.

In a separate filing, SIAEC and its joint venture partner Pratt & Whitney agreed to integrate the operations of International Aerospace Tubes-Asia into that of Component Aerospace Singapore. SIAEC will sell 2.6% of its shares in CAS to P&W for US$2.7 million ($3.8 million) in cash and the group’s shareholding in CAS will fall from 49% to 46.4%.

SIAEC explained that the group will continue to restructure and streamline its operations, as the maintenance, repair and overhaul (MRO) industry outlook remains challenging in the light of the global economic uncertainties

The group declared a 4 cents dividend for the half year period.

Shares in SIAEC closed 1 cent higher at $3.70 on Tuesday.