With continued support from government grants, SIA Engineering net profit increased 35.5% y-o-y to $14.5 million for 1QFY2021/22 ended June.
Although support from the Job Support Scheme (JSS) was lower than the same period last year, it “substantially cushioned” the impact of low-flight activities, says SIA Engineering Group in a July 23 business update. Without this support, the Group would have recorded a loss of $24.1 million.
The Group recorded revenue of $125.3 million for the quarter, a y-o-y increase of $6.8 million, or 5.7%, largely driven by higher flight activities.
Group expenditure at $128.2 million was slightly higher y-o-y by 0.9%, as cost management measures partially offset lower grants from government support schemes.
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Consequently, the Group incurred a lower operating loss of $2.9 million for 1QFY2021/22 compared to the operating loss of $8.6 million in the same quarter last year.
Share of profits of associated and joint venture companies was $14.8 million, an increase of $1.1 million, or 8.0%, y-o-y.
Contributions from the engine and component segment decreased $1.1 million, or down 5.7%, to $18.3 million, while the airframe and line maintenance segment turned in a lower loss of $3.5 million, an improvement of $2.2 million y-o-y.
As at June 30, equity attributable to owners of the parent was $1,548.9 million, comparable to the end of the previous quarter, says SIA Engineering.
Total assets stood at $1,805.4 million, a decrease of $4.4 million, or down 0.2%, from the previous quarter.
“The Group continues to maintain a strong cash balance of $683.5 million to tide us through uncertain recovery and to meet our deferred capital commitments,” notes SIA Engineering.
Basic earnings per share and net asset value per share as at June 30 are 1.30 cents and 138.1 cents respectively.
“Against the low base last year, the number of flights handled at our Singapore base during the quarter was 97% higher y-o-y,” says SIA Engineering. “However, as compared to last quarter, the increase was only 13%, with the increase largely coming from the base carriers at Changi Airport.”
“Amidst 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,” says the Group.
Shares in SIA Engineering closed flat at $2.08 on July 23.