The commercial aeronautics division of ST Engineering almost doubled its operating profit over the half-year, in a context of steady growth in its turnover and continued recovery in activity.
For the six months to June 30, the unit posted an operating profit of S$175 million ($128 million), compared to a profit of around S$89 million in the first half of 2021.
Revenue for the period rose 24% to S$1.4 billion, with ST Engineering attributing the increase to “the continued but not yet full recovery in business”.
On a quarterly basis, revenue grew 25% year-on-year to a pandemic high of S$730 million.
The unit landed S$1.2 billion worth of contracts in the three months to June 30. These include contracts with Safran for engine maintenance, airframe MRO with United Airlines, and orders under its cargo conversion programs.
Singapore-headquartered ST Engineering says demand for its A320 Family and A330 passenger-cargo conversions has been “strong”, with production slots booked until 2025 and 2026, respectively.
He also notes that demand for nacelles has been “healthy”, and that the MRO recovery has been “gradual but not complete”.
Vincent Chong, President and CEO of ST Engineering Group, said: “Despite a challenging operating environment in the first half of 2022, our businesses continued to demonstrate their underlying strengths and resilience.