SIA Engineering (SIAEC) reported that its net profit for the third quarter ended Dec 31, 2024, increased 42 per cent to S$38.2 million, compared with the same period in the previous year.
The aircraft maintenance, repair and overhaul (MRO) company’s revenue was up 11.3 per cent at S$324.8 million in the same period, it said in a business update on Friday (Feb 14).
It posted an operating profit of S$4.7 million, reversing a loss of S$3.4 million in the corresponding period a year ago.
On a per share basis, earnings increased to S$0.0342 from S$0.024.
SIAEC said that for the quarter, the number of flights it handled at Changi Airport increased 8.4 per cent year on year to 40,262, adding that the number of flights handled in December exceeded the pre-pandemic level in December 2019.
The group’s enhanced performance was attributed to not only the rise in the number of flights handled, but also to improved contributions from the engine and component as well as airframe and line maintenance business segments.
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While it conducted fewer aircraft checks in the quarter – 176 against 223 in the same period the previous year – a higher proportion of these checks required more work.
Despite ongoing supply chain disruptions in the aviation sector, the group said that it continued to manage these problems and was able to generate higher engine and component repair and overhaul output.
The share of profits of associated and joint venture companies for the quarter was up 35.3 per cent at S$32.2 million. It has over 20 subsidiaries and joint ventures in different countries and regions.
Looking ahead, it noted that the demand for aircraft MRO has stayed healthy, but cautioned that persistent supply chain problems, rising costs and a tight labour market remain near-term challenges.
The gradual implementation of a new enterprise operating system – with improved and redesigned MRO processes – will strengthen the group’s capabilities and allow it to tackle supply chain issues further, it added.
Shares of SIAEC closed trading on Friday flat at S$2.35 before the update.
