SIA Engineering posts 1HFY2024 earnings of $59.3 mil, up 82.5% y-o-y

While all operating segments recorded higher revenue, group expenditure also increased.

SIA Engineering Company has reported earnings of $59.3 million in its 1HFY2024 ended September, up 82.5% y-o-y.

Operating performance improved by $10.9 million y-o-y to a small operating profit of $0.1 million. Against last year’s low base, the company’s revenue grew 41.9% y-o-y to $514 million, largely driven by increase in flight activities.

While all operating segments recorded higher revenue, group expenditure also increased albeit at a lower rate of 37.8% to $513.9 million. This is mainly due to higher manpower costs, materials costs, equipment running costs and debt impairment provision for a customer that has suspended operations. Basic earnings per share for its 1HFY2024 stood at 5.28 cents.

For its 2QFY2024, SIA Engineering reported earnings of $32.3 million, up 64% y-o-y. The company recorded an operating loss of $0.3 million in the quarter, an improvement of $6.5 million y-o-y as revenue growth of 32.2% outpaced the 27.8% increase in expenditure. Basic earnings per share for its 2QFY2024 stood at 2.87 cents.

The company has declared an interim dividend of 2 cents per share.

Moving forward, the company continues to seek organic and inorganic growth opportunities that would enable it to serve a broader customer base. “To that end, we continue to explore avenues to enhance our maintenance, repair and overhaul capabilities and expand our geographical reach into new markets whilst nurturing our portfolio of partnerships and joint ventures,” the company says in a filing.

Shares in SIA Engineering closed 2 cents higher or 0.88% up on Nov 2.

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