SIAEC Q3 revenue crashes despite cost cuts, gov't support

The group reported a decrease of 58.5% YoY in revenue for Q3 FY2020-21.

SIA Engineering Company (SIAEC), the maintenance arm of Singapore Airlines, lost $147.5m in revenue for the third quarter of FY2020-21 despite cost-cutting measures and grants from the government.

The company said it recorded a revenue of $104.6m for Q3.

“Even as cost-cutting measures and grants from government support schemes remained, the reduction in group expenditure of $132.5 million (-56.1%) could not fully offset the reduction in revenue,” SIAEC said.

SIAEC also said the share of profits of associated and joint venture companies was down by 68.9% YoY. Contributions from associated and joint venture companies were similarly impacted by the reduction in flying hours and extended maintenance intervals, but partially offset by cost-saving measures and government support.

The net profit for the quarter ended 31 December 2020 was $7.7m, 85.7% lower than the same quarter last year.

SIAEC said it will be accelerate its Phase 2 Transformation to boost its effectiveness in the post-pandemic MRO landscape. The Phase 2 Transformation will utilize SIAEC’s investments in digitalisation, technology, and automation.

“We will continue to closely review the rationalisation of our portfolio of joint ventures and subsidiaries in the current environment, and concurrently explore new investment opportunities for capability expansion,” the company said.