SIAEC posts S$198.4m Q1 profit
SIA Engineering Company (SIAEC) has posted an operating profit of S$198.4m ($146.1m) for the first quarter of the 2016-17 financial year, a year-on-year increase of S$157.1m ($115.7m).
In results for the three months up to June 30, the MRO arm of Singapore Airlines said it gained a total of S$178m ($131.1m) from divestment activity.
S$141.6m ($104.2m) was gained from the divestment of its 10 per cent stake in Hong Kong Aero Engine Services (HAESL) to Rolls-Royce and HAECO.
In addition, SIAEC also received a one-off dividend of S$36.4m ($26.8m) from HAESL following the firm’s divestment of its 20 per cent stake in Singapore Aero Engine Services to Rolls-Royce Singapore.
However, overall revenues decreased by S$5.7m ($4.1m) to $271.6m ($200m) for the quarter, which SIAEC attributed to a drop in fleet management income.
SIAEC added that this was mitigated by increased revenues from line maintenance, airframe and component overhaul work.
Looking forward, SIAEC revealed it will continue to invest in capabilities for new-generation aircraft, technologies targeting better customer fleet efficiency and reliability and the formation of more strategic partnerships.