SIA Engineering third-quarter profit rises but revenue disappoints

SIA Engineering
SIA Engineering website

Aircraft maintenance firm SIA Engineering Company on Friday posted a 4.2 percent rise in third-quarter profit, helped in part by the increased share of profits from its subsidiaries.

Profit attributable to owners of the company rose to S$54.8 million in the three months ended December 31 from S$52.6 million in the corresponding period last year, SIA said in a regulatory filing.

Share of profits of associated and joint venture companies grew S$9.2 million or 29.1 percent.

Revenue dropped 0.5 percent to S$271 million in the quarter.

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Revenue fell due to the decrease in fleet management revenue, but the affect was partially mitigated by an increase in line maintenance revenue, the company said.

"The operating environment remains challenging with intense competition in the region and lighter maintenance arising from technological advancements of the new-generation aircraft", the company said in a statement.

In order to overcome these challenges, SIA Engineering said it has been investing in innovation and technology to improve its capabilities and sharpen competitive edge.

SIA Engineering is a major provider of aircraft maintenance, repair and overhaul services in Asia-Pacific.

Shares in the company ended down 0.3 percent at S$3.33 on the Singapore Exchange. The stock has lost 1 percent in an year.

This article was first published on February 2, 2018