Singapore Airlines – Financial results FY2012/2013

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.

Ordinary Dividend

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%.

2012/13 2011/12 % Change
Total Revenue $ 15,098 m $ 14,858 m + 1.6
Total Expenditure $ 14,869 m $ 14,572 m + 2.0

Financial Position and Ratios

2012/13 2011/12 2010/11
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.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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