By Ben Otto
SIA Engineering shares rose early Friday after quarterly sales and profit jumped on the back of returning air travel, even as the company flagged industry headwinds stemming from macroeconomic and other concerns.
Shares of the Singapore-based aircraft servicer were up 5.2% at 2.41 Singapore dollars (US$1.77) in Friday morning trade, swinging into the green for the year.
SIA Engineering said late Thursday that net profit in its fiscal second quarter ended September rose 64% from a year earlier to S$32.3 million, while revenue rose 32% to S$251.1 million.
The number of flights handled by its line maintenance unit in Singapore in the April-September period reached 87% of prepandemic levels, up 55% from a year ago, it said.
Still, “while the rebound is encouraging, the industry still faces headwinds from macroeconomic and geopolitical uncertainties, inflationary pressures, supply chain disruptions and a tight labor market,” it said. “These could weigh on business demand and operating margin recovery in the near-term.”
The company declared an interim dividend of 2.0 Singapore cents, a change from a year ago when it didn’t pay one.
Write to Ben Otto at [email protected]
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