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ST Engineering Aerospace sees 26% Q2 profit increase

ST Engineering Aerospace posted an operating profit of S$79.9 million ($57.7 milion) during the second quarter of the uear, an increase of 26% compared to last year.

Revenue for the quarter ended 30 June rose 16.9% to S$837 million, after including revenue from its newly-integrated Middle River Aircraft Systems (MRAS) unit. In September 2018, ST Engineering Aerospace announced plans to take over MRAS, an engine nacelle manufacturing unit previously owned by GE.

ST Engineering Aerospace says its second quarter revenue saw lower takings from its aircraft maintenance and modification, as well as component and engine repair and overhaul units. The latter group saw a drop in revenue due to the grounding of Indian carrier Jet Airways in April, as well as the absence of “opportunistic engine asset sale”.

Attributable net profit for the period dipped 3.5% to S$64.2 million.

During the period, ST Engineering Aerospace secured S$809 million in new contracts. These include a multi-year agreement to perform heavy maintenance on a long-time customer’s fleet of Boeing 717s, as well as overhaul contracts for CFM International CFM56-7B engines.

In its outlook for the second half of the year, ST Engineering Aerospace says it will continue efforts to digitise its operations, and pursue new engine maintenance and freighter conversion contracts, while also focusing on integrating MRAS into the company.

It also plans to complete and obtain certification for the Airbus A321P2F prototype. The A321P2F programme is jointly developed by ST Engineering Aerospace and Airbus, with Qantas being the launch customer for the converted freighter programme.

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