Sats

A weaker global economy put a dent in airport and food services provider Sats' first-quarter net profit, which fell 14.4 per cent from the same period a year earlier to $54.7 million.

Revenue was $465.1 million, up 5.8 per cent from the same period a year earlier, though growth in the gateway services and food solutions segments was partially offset by lower cargo revenue.

Cargo volume handled in the first quarter was 1.6 per cent lower than in the same period a year earlier, due to "global trade uncertainties", Sats said. Food solutions revenue rose 0.8 per cent to $241.4 million as core aviation catering subsidiaries in Japan and Singapore improved performance. Gateway services revenue rose 11.9 per cent to $223.3 million. Revenue share from Singapore fell from 64 per cent to 62 per cent.

The suspension of flights by private Indian carrier Jet Airways and lower foreign exchange gains also resulted in operating expenditure outpacing revenue growth.

Group expenditure rose 9 per cent to $408.3 million, driven by the consolidation of Ground Team Red entities which accounted for $20.6 million of the increase. Staff costs grew by $22 million, largely due to the volume growth and consolidation of the entities.

First-quarter earnings per share was 4.9 Singapore cents, down from 5.7 Singapore cents in the same period a year earlier. Net asset value per share was $1.53 as at the end of June, up from $1.48 as at the end of March.

Oriental Energy

Oriental Energy, China's biggest importer of liquefied petroleum gas, is considering an initial public offering (IPO) of its trading and logistics unit on the Singapore Exchange.

The company is in discussions with the exchange and the city-state's Government about the share sale for its subsidiary Oriental Energy (Singapore) International Trading, according to an official at Nanjing-based Oriental, reported Bloomberg.

Other locations are being considered for the planned IPO, including Hong Kong, said the official, who asked not to be identified due to company policy.

"Oriental Energy is keen to further tap the global capital markets," the company said in an e-mail response to questions. "A potential IPO in the future, if proved strategic, will not be ruled out."

The company imported about five million tonnes of the fuel last year.