Singapore-based SIA Engineering Company (SIAEC) posted a net profit of S$68.8 million ($52.2 million) in the first half of the fiscal year, up 16% from the same period last year. For the second quarter of the fiscal period, it reported a net profit of S$35.6 million ($27 million) in the quarter, up 10%.
The company's revenues for the first half were up 12.1% to S$576.2 million ($437.5 million), while its September quarter revenues were up 22% to S$307.5 million ($233.5 million). Second quarter revenue growth outpaced its 20.9% increase in expenditure. The company said expenditure increased largely due to higher material, staff, and subcontract costs, as well as exchange losses. First half revenues also outpaced first half expenditure, which totalled S$572.8 million ($434.9 million) and was up 11.5% from the first half of the previous financial year.
SIAEC generated an operating profit of S$3.4 million ($2.6 million) in the first half and S$2.4 million ($1.8 million) in the second quarter of the fiscal year.
The company said the strong results were driven by healthy demand for maintenance, repair, and overhaul services (MRO) in the first half of the financial year.
As of September 30, 2024, equity attributable to owners of the parent was S$1.6bn ($1.2bn) and total assets were valued at S$2bn ($1.5bn).
The company declared an interim dividend of S$0.02 ($0.015) per share. The dividend will be paid on November 29, 2024.
SIAEC said it took measures to mitigate ongoing supply chain issues and was able to meet the increased demand for its engine and component shops. In addition, line maintenance demand across its network increased.
For its outlook, the company said it expects healthy MRO demand to continue, coinciding with strong travel demand.