SIA Engineering's Q2 profits up 7.3% to $38.1m

Its airframe & component overhaul services and line maintenance businesses performed well.

SIA Engineering Company's (SIAEC) profits rose by 7.3% YoY to $38.1m in Q2.

According to OCBC Investment Research, revenue grew 3.7% YoY to $274.7m on higher airframe and component overhaul services (ACS) and line maintenance (LM) revenue, partially offset by lower fleet management (FM) revenue.

Operating expenses rose 6.2% YoY to $255.2m largely due to higher staff costs. However, as the share of profits from associated and JV companies jumped 33.1% to $22.9m.

For H1, SIAEC's revenue rose 2.2% YoY to $547.5m, with the increase in LM revenue partly offset by lower FM revenue.

The contribution of profits from associated and JV companies grew by 16.1% to $44m, with higher contribution from most associates as the work content of shipped engines was higher.