SIA Engineering Group (SIA) has posted revenue of $362.2 million for the first half of the financial year ending September 30, 2022, an improvement of $98.7 million (+37.5%) year-on-year, largely driven by the increase in flight activities, and all segments recorded higher revenue. SIA’s expenditure increased at a higher rate of 38.0% from $102.8 million to $373.0 million year-on-year mainly due to the stepping down of government wage support. Excluding wage support, the expenditure increase was 21.2%, with manpower costs and material costs rising in tandem with higher business activities.
SIA incurred a higher operating loss of $10.8 million as compared to the operating loss of $6.7 million in the same period last year, as the revenue growth was not sufficient to offset the increase in expenditure.
The Group’s net profit for the first half ended 30 September 2022 was $32.5 million, an improvement of $7.5 million year-on-year. Excluding wage support, Group’s profit was $21.4 million.
In the quarter ending September 30, 2022, the Group recorded an operating loss of $6.8 million, a deterioration of $3.0 million year-on-year as revenue grew by 38.0% to $190.7 million, while expenditure rose at a higher rate of 39.1% to $197.5 million. The increase in revenue was largely driven by higher flight activities and all segments recorded higher revenue. Expenditure increased mainly due to lower government wage support, higher manpower costs, and material costs.
The Group recorded a net profit of $19.7 million for the quarter that ended 30 September 2022, an improvement of $9.2 million year-on-year. Excluding wage support, the net profit was $17.3 million.
SIA Engineering’s total assets stood at $1,936.2 million as of 30 September 2022, an increase of $98.0 million (5.3%) from 31 March 2022 while the cash balance was $605.6 million with no borrowings.
Going ahead, SIA Engineering predicted an uncertain outlook due to the elevated risk of global recession and geopolitical tensions. The Group also said that factors like high inflation, wage pressure, and cessation of wage support will pose challenges in near future.