SIAEC’s profits dip 6.5% to $38.6m in Q1

Weak fleet management revenue weighed on topline.

Without one-off gains to boost 1QFY17 core earnings, SIA Engineering Company’s (SIAEC) core profit after tax and minority interests (PATMI) dropped 6.5% YoY to $38.6m

According to a report by OCBC, revenue for the quarter slipped 2.1% YoY due to a tumble in fleet management revenue. This was partly offset, though, by raised revenue from line maintenance and airframe and component overhaul.

Further, operating costs grew 6.5% YoY to $273.2m, but included in its staff expenses was a one-off provision of about $21.3m from the gain on divestment of its 10% stake in HAESL. Additionally, as a result of the divestment, SIAEC saw a $141.6m in divestment gain as well as $36.4m in special dividend from HAESL.

However, Q1 share of profits of associated and JV companies sank 13.8% YoY to S$20.7m.