It is going to be a busy week ahead in the Singapore market as more companies are scheduled to release their quarterly results during the coming weeks.
One of the most closely watched companies will be Singapore Airlines (SIA), which will unveil its second-quarter results on Friday evening.
The strong take-off in air travel since borders opened up earlier this year saw the company posting strong first-quarter earnings for the period ending June 2022. After two loss-making years, SIA posted net profit of $370 million on the back of $3.91 billion revenue for the April to June quarter as 5.1 million passengers clambered aboard SIA and Scoot flights.
Operating profit, at $556 million, was a record for a first quarter and the second-highest quarterly profit for the airline. Its second-quarter numbers could be even stronger, say analysts.
The strong pickup in passenger travel has boosted the airline’s balance sheet, prompting it to redeem $3.86 billion of its 10-year mandatory convertible bonds (MCBs) issued in June 2020. It is widely expected to announce the redemption of its second tranche of MCBs, issued in 2021, soon.
Prior to SIA’s results, its subsidiary SIA Engineering will also unveil its earnings report on Tuesday.
DBS Bank will unveil its third-quarter earnings on Thursday, while OCBC Bank will announce its third-quarter results on Friday morning.
After record quarterly earnings announced by UOB last week, thanks to fatter net interest margins, both banks are also expected to post strong results.
UOB reported a 34 per cent surge in core net profit of $1.4 billion for its July to September quarter.
Analysts are bullish on the banks and expect improved dividends for the full year.
On the technology front, AEM will report its third-quarter results on Friday, while Netlinks will announce first-half results on Wednesday. Aztech’s third-quarter results are due on Thursday.
Among the notable results for the week of Nov 7 are Singtel, StarHub and Sats.
Maybank analyst Kelvin Tan is optimistic on the local telco sector, and anticipates earnings momentum to remain broadly positive as economic activity continues to ramp up with the removal of most Covid-19 measures in key regional markets, and strong contribution from newly integrated businesses.
Sats, whose shares has been severely beaten down over recent weeks following the company’s announcement of plans to finance a portion of its $1.9 billion purchase of Paris-based cargo handler Worldwide Flight Services with a rights issue, will announce its first-half results on Nov 9.