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SIA Soared Higher for Latest Quarter

SIAEngSingapore Airlines Limited (SGX: C6L) grew its revenue for the first half of 2014 (1H 2014) by 2.2% year-on-year to S$6.4 billion. The revenue increase was mainly due to “recognition from settlement pertaining to changes in aircraft delivery slots and growth in passenger carriage”. The operating profit for the 1H 2014 improved 19.0% to $169 million. SIA Engineering (SGX: S59), a subsidiary of SIA, contributed 33.1% of the operating profit.

The net profit flew 68% to S$282.4 million, as compared to 1H 2013. There was an exceptional item of $21.8 million due mainly to “a gain of $339.2 million upon completion of the sale of Virgin Atlantic Limited to Delta Air Lines, Inc and an impairment loss of $293.4 million on four surplus freighters that have been removed from the operating fleet and marked for sale”.

For the second quarter, the passenger carriage grew 4.9% against a 3.2% increase in capacity. As a result, passenger load factor improved to 81.1%. Load factor is an industry measure of the amount of utilisation of the total available capacity of an aircraft.

As of 30th September 2013, the SIA has a total debt of S$988.7 million. The cash balance stands at S$5.0 billion.

For the half year, the company generated S$1.3 billion in net cash flow from operations. This was a 37.1% year-on-year.

SIA has declared an interim dividend of 10.0 Singapore cents per share. The company expects keen competition, amid continued global economic uncertainty. It also said that the prices of fuel are “likely to remain high and volatile”.

The shares of SIA closed at S$10.25 on Tuesday. The historical PE is at 31.8 and the dividend yield is at 2.2%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.