SIA released its full year results recently for the financial year 1 April 2012 to 31 March 2013 (FY2013).
FY2013 was another challenging year for SIA. Net profit increased 12.8% from the year before to $378.9 million. This performance was boosted by sale of aircraft, spares, and spare engines (non-operating). However, group operating profit declined 19.9% year-on-year due mainly to high fuel costs and lower yield.
Net profits for different financial years were:
FY2007: $ 2,129 m
FY2008: $ 2,049 m
FY2009: $ 1,062 m
FY2010: $ 216 m
FY2011: $ 1,092 m
FY2012: $ 335.9 m
FY2013: $ 378.9 m
Operating results were impacted by SIA Cargo (-40.3%) and SilkAir (-7.6%). The global economic slowdown put a strain on air cargo business.
For this financial year, the board proposed 17 cents final dividend. Together with interim dividend of 6 cents paid out in December, total ordinary dividend for this year will be 23 cents (FY2012: 20 cents).
Earnings per share was 32.2 cents and total dividend payout ratio is 71.4% (70.6% in FY2012). SIA continues to pay out good dividend.
Group Operating Results
In a difficult environment, total revenue increased by 1.6% to $15,098 million. Control of expenditure saw total expenditure increased only 2.0%.
|Total Revenue||$ 15,098 m||$ 14,858 m||+ 1.6|
|Total Expenditure||$ 14,869 m||$ 14,572 m||+ 2.0|
Financial Position and Ratios
|Return on Equity||2.9% *||2.5%||7.9%|
|Earnings per share (cts)||32.2||28.3||91.4|
|Ordinary Dividend per share (cts)||23.0||20.0||60.0|
|Special dividend (cts)||– –||– –||80.0|
|Cash and cash equivalents||$ 5,059 m||$ 4,702 m||$7,434 m|
|Net asset value per share ($)||$ 11.15||$ 10.96||$11.89|
* ROE taken from Reuters
Return on Equity (ROE) improved marginally to 2.9% from 2.5% previously.
Net asset per share increased to $11.15. With last traded share price as at 23 May 2013 of $10.83 cum dividend, the Price-to-Book ratio was 0.97 times, which was below book value.
Cash and Cash Equivalents increased to $5,059 million from $4,702 million in previous financial year. This was due to better management of cash flow in operating, investing and financing activities.
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