SIA Engineering Company’s Q3 profit climbs 6.7% to $49.4m

Thanks to higher profits from JVs, associates.

SIA Engineering Company (SIAEC) enjoyed a 6.7% YoY rise in profit to $49.4m in 3QFY16, thanks to increased contributions from associated and joint venture companies.

According to a report by OCBC, SIAEC’s the share of profits from its JV and associated companies jumped 31.2% to $33.2m thanks to one-time restructuring gains, including earnings from sale of facilities.

Meanwhile, revenue for the quarter climbed inched up 3.7% to $275.2m due to higher fleet management and line maintenance revenue.

Operating expenses were also up marginally by 2.2% to $264.2m due to increases in material and staff costs, offset slightly by a pullback in other expenses.

Looking forward, OCBC expects outlook to be muted on back of reduced heavy maintenance checks as a result of improved airworthiness and longer maintenance cycles for both aircraft and engines.