SIA Engineering profits up 11.6% to $87.6 in H1

Higher airframe and line maintenance revenue drove growth.

SIA Engineering's (SIAEC) net profit grew 11.6% YoY to $87.6m in H1 FY2019-2020, the company announced. Revenue edged up 0.7% to $512.7m over the same period.

In Q2, net profit jumped 21.1% YoY to $46.0m, and revenue rose 1.3% to $254.6m.

Also read: SIA Engineering profits inched up 2.7% to $41.6m in Q1

The growth in revenue during the first half was mainly attributed to higher airframe and line maintenance revenue, but was offset by lower engine and component revenue.

Expenditure in H1 fell 2.5% to $475.4m, mainly attributed to lower subcontract and material costs.

According to Maybank Kim Eng, SIAEC’s profits after tax and minority interests (PATMI) is expected to hit $168m for the full financial year 2019-2020, from $160.9m from the previous year.

In a separate report, DBS Equity Research cited that the further expansion in its core operating margin, increased workload at its engine shops, recovery in associate or joint venture profits and a boost in maintenance work volumes could prove as earnings drivers for the group.

SIA Engineering expressed plans to further strengthen its joint ventures and alliances.