SIA Engineering profits fly to $33.2m in Q3 2021/2022
The flight volume at 31% of pre-pandemic was still considered encouraging.
SIA Engineering Group says its business recovery for the financial year 2021/2022 (FY 21/22) remains uncertain, dependent on the extent of revenue recovery outpacing costs and the tapering of government wage support.
Group revenue for the third quarter of FY 21/22 increased 33.8% year-on-year to $140m. The increase was driven by increased transit handling-related revenue due to the higher number of flights handled. Meanwhile, expenditure posted a higher rate of 42.8% to $147.8m, mainly due to a reduction in government wage support. Excluding the impact of government wage support, expenditure increased by 12.4%.
Net profit was $33.2m for the quarter ended 31 December 2021, an increase of $25.5m year-on-year. Excluding government wage support and the one-time write-back of tax provisions, the group would have been in a loss position of $7m.
With international flight activities continuing to recover with progressive relaxation of border restrictions and establishment of bilateral travel arrangements, the number of flights handled at the group's Singapore base was 65% higher year-on-year and 17% higher quarter-on-quarter. Whilst this volume of flights handled is only at 31% of pre-pandemic volume, the continuing recovery trend is encouraging.
SIA Engineering said it is focusing on initiatives that will strengthen core competency through transformation and have been actively pursuing business expansion through capabilities building and extending geographical reach. The recently announced acquisition of a 75% stake in SR Technics Malaysia, with the newly-formed Component Services Division, broadened their range of component repair capabilities.
As for sustainability, it has been testing the use of sustainable aviation fuel. In addition, its wholly-owned subsidiary, SIA Engineering Philippines, also recently signed an agreement to collaborate with an aircraft part-out specialist to provide sustainable, end-to-end aircraft recycling solutions.