SIA Engineering’s net profit down 3.7% to $176.6m in FY16

Due to lower contributions from associates.

SIA Engineering Company reported that its full-year net profit slipped 3.7% to $176.6 million, on back of lower revenue and a decrease in share of profits from associated and joint venture companies.

The group's full-year revenue dorpped by 0.7% to $1.11 billion, on back of lower airframe and component overhaul revenue which was mitigated by higher line maintenance and fleet management revenue. Overall expenditure dropped by 2.7% to $28.3 million on back of lower subcontract and staff costs.

Meanwhile, share of profits from associated and joint venture companies dropped 11.4% to $94.2 million. Contributions from the engine repair and overhaul centres dropped by 25% to $50.7 million 25.0%, mainly due to lower work content on the engines serviced by Singapore Aero Engine Services.

SIAEC also recognized a $4.3 million loss on the closure of an associated company, and made a $2.5 million provision for impairment for another associated company.

The group has declared a final ordinary dividend of 8 cents per share. Together with the interim dividend of 6.0 cents per share paid earlier, the total dividend payment for FY16 will be 14.0 cents per share.