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53
SIA Annual Report 02/03
Financial Review
PERFORMANCE OF SUBSIDIARY COMPANIES (continued)
SIA Engineering Group (continued)
The SIAEC Group’s shareholders’ funds rose 22.7 per cent to $837.7 million as compared to 31 March 2002. The return
on average shareholders’ funds was 27.0 per cent, a decrease of 11.2 percentage points from 2001-02. Basic earnings
per share was 20.5 cents, a decrease of 8.0 per cent over the year ended 31 March 2002.
Singapore Airlines Cargo
2002-03 2001-02 Change
$ million $ million %
Total revenue 2,520.5 2,039.0 + 23.6
Total expenditure 2,457.6 2,130.0 + 15.4
Operating profit 62.9 (91.0) n.m.
Profit after tax 66.6 (93.2) n.m.
SIA Cargo generated an operating profit of $62.9 million in 2002-03 compared to an operating loss of $91.0 million for
the same period last year R1. The turnaround in operating performance was a result of a general recovery in world
economies and the resultant improvement in loads and yield. Profit after tax was $66.6 million, after accounting for an
exceptional $30.1 million tax write-back due to the reduction in corporate tax rate from 24.5 to 22 per cent from Year of
Assessment 2003.
Total revenue rose 23.6 per cent to $2,520.5 million. This was primarily attributed to an increase in loads carried (+14.8 per
cent) and higher yield (+6.2 per cent). Load factor went up 2.1 percentage points to 69.6 per cent.
Total expenditure increased $327.6 million to $2,457.6 million, mainly from higher fuel costs (+$49.7 million), aircraft
maintenance and overhaul costs (+$65.5 million), handling charges (+$41.7 million) and bellyhold costs (+$52.1 million).
Unit cost increased 3.0 per cent to 23.9cts/ctk while the breakeven load factor went down 2.1 percentage points to
69.9 per cent.
During the year under review, SIA Cargo took delivery of one B747-400 freighter, enlarging its fleet to 12 B747-400
freighters. Capacity increased 10.9 per cent to 9,927 million tonne-kilometres.
Shareholders’ funds as at 31 March 2003 stood at $1,427.4 million while total assets reached $3,043.6 million.
Capital expenditure was $345.8 million, primarily for the purchase of one B747-400 freighter and progress payments for
firm aircraft orders.
R1 SIA Cargo was corporatized on 1 July 2001, the figures for April–June 2001 were based on SIA’s cargo profit-centre accounts.
SilkAir
2002-03 2001-02 Change
$ million $ million %
Total revenue 254.1 196.8 + 29.1
Total expenditure 227.0 178.7 + 27.0
Operating profit 27.1 18.1 + 49.8
Profit after tax 31.6 17.5 + 80.6
Expenditure was $48.3 million higher mainly because of higher fuel and oil costs, handling costs and a provision for a
profit-sharing bonus.
Profit after tax was $31.6 million, after accounting for surplus from sale of aircraft of $12.0 million.
Unit cost dropped 4.0 per cent to 65.6 cts/ctk and breakeven load factor improved 0.7 percentage point to 45.6 per cent.
Shareholders’ funds grew 10.3 per cent to $310.9 million at 31 March 2003.
Capital expenditure was $43.6 million, principally for pre-delivery payments of one A319 and two A320 passenger
aircraft, and spare parts.
As at 31 March 2003, SilkAir’s route network linked 26 cities in 10 Asian countries.