SIA Engineering's full financial year net profit was up 46.2% year-on-year (YoY) to $97.1 million, with revenues climbing 37.5% to $1.09bn. The growing demand for maintenance, repair and overhaul (MRO) services bolstered the strong results.
It noted its expenses rose 32.6% to $576.3 million in the full year due to the higher manpower costs and material usage from the growing demand. Its operating profit swung from a loss of $26.3 million in the previous financial year to a profit of $2.3 million. ""It was the first year of profit at the operating level since the onset of the pandemic,"" the group said. ""If we were to exclude the government wage support recorded last year, operating performance improved by $39.8 million.""
The group noted that in the last quarter of the financial year it had exited from the troubled Pratt & Whitney PW1500G engine's risk-revenue sharing programme, which it said made a one-time write-off of $25.1 million in net assets.
Its equity attributable to owners of the parent, as of March 31 2024, was at $1,7bn, up 1.3% YoY. Total assets stood at $2.1bn as of 31 March, 2024, up 5.3% YoY and its cash balance was $646 million.
The group's board is recommending a final ordinary dividend of $0.06 per share for the 2023-24 financial year. Payment of the final dividend, which amounts to approximately $67 million, will be paid on August 14, 2024. Combined with its interim dividend of $0.02 per share paid earlier, the total dividend payout for the full financial year will be $0.08.
The group said: ""Demand for MRO services looks healthy as global air travel and flight activities edge closer to pre-pandemic levels. However, a tight labour market, supply chain issues and inflation remain key concerns that weigh on our near-term operating margins."" SIA Engineering said it will look to digitalisation and workforce upskilling, as well as utilising cost discipline to address these challenges and strengthen its capacity.
SIA Engineering full year profit up nearly 50%
