Sats lifts quarterly net profit to S$81.1 million
Revenue increased 9 per cent, but higher input costs weighed on operating profit. The interim dividend was held at 2 Singapore cents per share.
Higher cargo and meal volumes, together with lower tax expenses, helped Singapore’s Sats increase second-quarter net profit by 2.8 per cent to S$81.1 million. The air cargo handler and airline caterer reported the results for the quarter ended 30 September in a regulatory filing on 11 November.
Quarterly revenue reached S$1.71 billion, a 9 per cent increase. Operating profit, however, was S$145.4 million, down 7.6 per cent. Sats attributed the decline to higher input costs linked to the Middle East conflict and comparison with a strong year-earlier period. It also reported operational disruption from the conflict.
The board maintained its first-half interim dividend at 2 Singapore cents a share. The payment date is 10 December, following the closure of the books on 20 November.
Within its businesses, gateway services recorded revenue of S$1.3 billion, up 10 per cent. Revenue at food solutions increased 5.6 per cent to S$376.5 million, which Sats linked to greater demand for aviation and non-aviation meals.
Sats processed 2.6 million tonnes of cargo, an 8 per cent increase, led by growth of 19.4 per cent in the Americas. The group said this marked its 12th consecutive quarter of cargo volume growth exceeding the industry’s.
Across the first half, Sats earned net profit of S$156.2 million, up 4.3 per cent, on revenue of S$3.39 billion, up 10.1 per cent. It expects network demand to remain resilient, although the pace of growth depends on developments in the Middle East conflict and trade conditions.
