Q2 profit up 4%, Sats hikes dividend to 6 cents per share

Ground-handling and inflight catering service provider Sats lifted second-quarter earnings on the back of improved revenue and operating profit.

Net profit for the three months to Sept 30 climbed 4 per cent to $62.1 million, up from $59.7 million in the same period the year before, it said yesterday.

Revenue rose 3.7 per cent to $438.5 million. Turnover from the food solutions segment expanded 4 per cent to $252.7 million, while that from gateway services rose 3.4 per cent to $184.5 million.

Excluding the impact on revenue from the transfer of the food distribution business to its joint venture company Sats BRF Food, the group's underlying revenue would have increased by 7.7 per cent, said Sats. Revenue for food solutions would also have been higher by 10.8 per cent.

Operating profit for the quarter widened 7.4 per cent to $63.6 million.


    NET PROFIT: $62.1 million (+4%)

    REVENUE: $438.5 million (+3.7%)

    DIVIDENDS: Six cents per share (+20%)

Earnings per share came in at 5.6 cents, compared with 5.4 cents previously. Net asset value per share was higher at 136.8 cents as at Sept 30, compared with 134.4 cents as at Dec 31 last year.

Net profit jumped 15.5 per cent to $126.2 million for the half year, while revenue was up 2.8 per cent to $862.7 million.

The group has declared an interim dividend of six cents per share to be paid out on Dec 8 - up on the five cents previously.

"The operating environment is challenging, with global economic uncertainties and competitive pressures in the aviation business," said Sats.

"Our focus continues to be on harnessing technology to improve productivity, seeking new opportunities in the aviation business beyond Singapore, and applying our capabilities to new ventures outside aviation."

Sats shares closed four cents or 0.9 per cent up at $4.74 yesterday, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on November 11, 2016, with the headline 'Q2 profit up 4%, Sats hikes dividend to 6 cents per share'. Subscribe