,Singapore

SIA Engineering's full-year net profit jumps 88.2% to $332.4m

Thanks to the divestment gains from selling stakes in HAESL.

SIA Engineering ended its financial year with a bang as it recorded an 88.2% increase in net profit.

According to the group, this is due to the 141.6m gain from the divestment of its 10% stake in Hong Kong Aero Engine Services (HAESL) to Rolls-Royce Overseas Holdings and Hong Kong Aero Engineering Company (HAECO).

This came as full-year revenue decreased by 0.8% to $1.1b, mainly due to the fleet management.

Meanwhile, its expenditure increased by 2.4% to $224.8m. This is because of the uptick in staff costs, offset in part by lower subcontract cost. The increase in staff costs was due mainly to a provision made in the first quarter for the increase in the profit-linked component of staff remuneration arising from the gain on divestment of HAESL, based on profitability-related key performance indicators.

"Salary increments and an increase in overtime as more staff are released for training on new aircraft types also contributed to the increase in staff costs. Operating profit before the provision was $93.3m, a decrease of $11.1m or 10.6%. Operating profit after taking into account the one-time impact on staff costs arising from divestment was $72.0m," the group said.

Here's SIA Engineering's outlook for the next quarters:

In spite of global uncertainties and the challenges the Company already faces in the maintenance, repair and overhaul sector from excess capacity and aggressive pricing, there remain growth opportunities. The Company continues to invest in strategic partnerships and advancing innovations, and maintain vigilance on costs.

During the year, a Joint Venture Agreement was signed with Moog Incorporated to establish a joint venture for repair and overhaul services of Moog’s products on the new-generation Boeing 787 and Airbus A350 aircraft. This followed earlier strategic tie-ups with Boeing on fleet management and Airbus on heavy maintenance business.

We also signed a Memorandum of Understanding with Stratasys Ltd., a leading 3D printing and additive manufacturing solutions company, to offer design, engineering, certification support and parts production to our global network of airline customers. These investments are not expected to be accretive in the near term.

These initiatives will strengthen the Group's core competencies and service offerings, and position us well to seize emerging opportunities for long-term growth.
 

Get Singapore Business Review in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

This is supported by Lao PDR, Thailand, and Malaysia.
Re-exports, meanwhile, saw a jump by 19% in the same month.
SNACK Investment will be available for consumers for as low as $1.
The programme is done in partnership with 10x1000 Tech
The maturity date for these notes will be in 2028.
Assets in this category experienced a jump to $10b in less than three years.
CityDev, SATS, and Mapletree Logistics Trust showed the most growth.
Limiting the entry of foreign workers would not result in more jobs for Singapore, Wong said.
They also agree to explore other collaboration opportunities.
It creates a one-stop ecosystem that connects its users to EV car dealers.
Its passenger capacity remained steady at 32% of pre-COVID levels.
This would increase the opportunities for cross-border investments.
A return to pre-pandemic levels, however, could take two to three years.
HongKongLand and SGX showed the most growth today.