SIA Engineering profits down 13.9% to $160.9m in FY2018/2019

Falling airframe and fleet management revenues hit earnings.

SIA Engineering ended its FY2018/2019 on a dismal note after profits fell 13.9% YoY to $160.9m from $186.8m in FY2017/2018, an announcement revealed. Revenue for the year also dipped 6.8% YoY from $1.09b to $1.02b.

It blamed its weak performance to a decline in airframe and fleet management revenue. Line revenue was also lower, mainly due to the loss in revenue contribution from a line maintenance subsidiary divested in Q3 FY2018/2019.

Also read: SIA Engineering profits crashed 40.1% to $33.1m in Q3

In Q4, profits dropped 12.3% YoY to $49.3m from $56.2m, whilst revenue slipped 7.4% YoY from $276.4m to $256m.

“Excluding the $15m gain on divestment of ACTS, profit for the current quarter of $49.3m would have been $8.1m, or 19.7% higher than the same period last year,” SIA Engineering highlighted.

As at 31 March 2019, the equity attributable to owners of SIA Engineering of $1.53m was $44.9m or 3% higher compared to March 2018. The increase was mainly due to profits earned for the year and gain in foreign currency translation reserve as a result of the strengthening of the USD, partially offset by the payment of the final dividend in respect of FY2017/18 and interim dividend for FY2018/19.

Total assets stood at $1.85m at the end of FY2018/19, an increase of $41.3m or 2.3%.

During the year, SIA Engineering’s associated company, Eagle Services Asia, commenced maintenance for the PW1100G engines, which is one of the engines that power the new-generation A320neo aircraft. Its joint venture companies (JVs) formed previously, namely Heavy Maintenance Singapore Services, Moog Aircraft Services Asia and Additive Flight Solutions, also commenced operations during the year.

“We also recently announced the plan to extend our line maintenance network to Thailand, in partnership with NokScoot Airlines Co. We will leverage our portfolio of JVs with strategic partners, diversified service offerings and strong balance sheet to pursue suitable opportunities for sustainable growth.”

SIA Engineering’s earnings per share (EPS) declined 13.9% YoY to $0.1438 for FY2018/2019.