Company Briefs: Singapore Airlines; Sats; ComfortDelGro

ST PHOTO: JASON QUAH

Singapore Airlines 

Singapore Airlines (SIA) is proposing to issue up to $850 million in principal amount of bonds, convertible into new ordinary shares in the company's capital. The $850 million figure is an indicative size.

The convertible bonds are proposed to be placed with institutional investors and other investors. HSBC has been appointed as the sole bookrunner and lead manager for the issue.

SIA will apply to the Singapore Exchange to list the convertible bonds and new shares. SIA expects to use the proceeds to fund operating cash flow, debt service and capital expenditure.

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Sats 

Ground handler and in-flight caterer Sats has narrowed its quarterly loss, slashing expenditure by almost half on the back of a 61 per cent drop in staff cost.

It reported a net loss of $33.2 million for the three months to September in an exchange filing yesterday after market close. While this is 154.7 per cent lower year on year, Sats managed to shrink the red ink from $43.7 million in the preceding quarter.

The smaller quarterly loss was achieved as Sats continued to slash its costs - by 46.6 per cent, or $201.3 million, year on year. Revenue was 53.5 per cent lower at $231.1 million for the second quarter.

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ComfortDelGro

ComfortDelGro is back in the black with a net profit of $21.7 million for the third quarter that ended on Sept 30, a turnaround from the net loss of $6 million in the first half of the year.

But without government relief in the various countries in which it operates, such as Britain and China, the transport operator would have made an operating loss of $0.2 million for the quarter.

Revenue for the third quarter rose 22.9 per cent compared with the preceding three months. But it recognised an impairment provision of $17.5 million in the third quarter for the British businesses.

A version of this article appeared in the print edition of The Straits Times on November 13, 2020, with the headline 'Company Briefs'. Print Edition | Subscribe