SingPost's deal with Alibaba still in pipeline

Underlying net profit at SingPost in the three months ended March 31 fell 20.1 per cent to $31.8 million, due mainly to a fall in rental income as redevelopment of the Singapore Post Centre mall commenced in the third quarter.
Underlying net profit at SingPost in the three months ended March 31 fell 20.1 per cent to $31.8 million, due mainly to a fall in rental income as redevelopment of the Singapore Post Centre mall commenced in the third quarter. ST PHOTO: SEAH KWANG PENG

Postal and logistics group reports $105.4m net profit for Q4

A landmark joint venture agreement inked last July between Singapore Post and Chinese e-commerce giant Alibaba is still being finalised, SingPost said yesterday.

Alibaba had agreed to raise its equity stake in the postal and logistics group by buying new shares equivalent to a 5 per cent stake in SingPost.

Both parties have since extended the long-stop date on the agreement from May 31 to Oct 31, as "longer time is required to fulfil the conditions precedent", SingPost said yesterday when it released its fourth-quarter results.

This is the third time the deadline has been extended. A first extension was announced last November, and a second in February.

Alibaba had also agreed last year to acquire a 34 per cent stake in SingPost logistics unit Quantium Solutions International. This deal will be finalised by Oct 31, in the light of new business opportunities arising from related investments, SingPost said.

  • AT A GLANCE

    REVENUE: $317.6 million (+27.7 %)

    NET PROFIT: $105.4 million (+196.4%)

    DIVIDEND: 2.5 cents (unchanged)

SingPost held its earnings call yesterday after a one-hour delay due to "administrative matters".

It reported a fourth-quarter net profit of $105.4 million, up 196.4 per cent from a year earlier, on the back of one-off divestment gains.

Underlying net profit in the three months to March 31 fell 20.1 per cent to $31.8 million, due mainly to a fall in rental income as redevelopment of the Singapore Post Centre mall commenced in the third quarter, as well as higher finance expenses.

Fourth-quarter revenue rose 27.7 per cent to $317.6 million, boosted by growth in e-commerce-related activities and contributions from newly acquired business units.

Earnings per share in the fourth quarter was 4.36 cents, up from a restated 1.49 cents a year ago, while net asset value per share was 72.26 cents as of March 31, up from 68.37 cents as at March 31 last year.

SingPost has proposed a final dividend of 2.5 cents per share to be paid on Aug 3, amounting to a full-year payout of seven cents per share.

The firm reported a net profit of $248.9 million for the full year, up 57.9 per cent from a year earlier, as annual revenue grew 25.2 per cent to $1.15 billion.

Overseas revenue now accounts for 43.9 per cent of group turnover, up from 32.5 per cent last year.

Earnings were announced after trading closed. SingPost ended half a cent lower at $1.585 yesterday.

A version of this article appeared in the print edition of The Straits Times on May 11, 2016, with the headline 'SingPost's deal with Alibaba still in pipeline'. Print Edition | Subscribe