Financial Results for the First Half ended 30 September 2017 ("1H17-18")
Highlights :
1. For the six months ended 30 September 2017, Group revenue decreased 0.2% to $861.3 million
2. Operating profit for the six months was $114.6 million, a decrease of 3% from the same period last year
3. Share of after-tax profits from associates/joint ventures increased significantly by 41.4% to $33.5 million
4. Underlying net profit was $122.5 million, 4.2% higher than the corresponding period last year
5. Profit attributable to owners of the Company increased 2.6% year-on-year to $129.5 million
6. Earnings per share rose 1.8% to 11.6 cents for 1H17-18
7. As at 30 September 2017, the Group had total assets of $2.2 billion
8. Cash and short-term deposits decreased $34.4 million to $471.4 million
9. Free cash flow generated during the first six months amounted to $46.3 million and debt-to-equity ratio remained healthy at 0.07 times
10. Proposes an interim dividend of 6 cents per share, payable on 8 December 2017.
SATS Wins Mumbai Airport International Cargo Concession
Singapore, 29 December 2017
SATS Ltd., in a joint bid with Cargo Service Center India Private Limited ("CSC"), has won a cargo handling concession contract in Chhatrapati Shivaji International Airport ("CSIA") in Mumbai, India. The CSIA concession will commence in April 2018 and run for 18 years.
SATS announced on 27 December 2017 the subscription through its subsidiary SATS Investment (II) Pte. Ltd., of a 49% stake in CSC’s wholly owned subsidiary, Mumbai Cargo Service Center Airport Private Limited (MCSC).
MCSC will be responsible for operating the concession, pursuant to which it will manage the international cargo facilities at CSIA.
Financial Results for the Financial Year Ended 31 March 2018 ("FY17/18")
Highlights :
1. The Group reported revenue of S$1,724.6 million, a dip of 0.3% or S$4.8 million in the same corresponding period FY16/17
2. Share of profits from associates and joint ventures grows 9.2% to $71.2 million
3. Overall growth in operating volumes mitigates price pressures
4. Underlying net profit was 236.1 million, a slight increase of 1.8% vs preceding financial year
5. Proposed final dividend of 12 cents (full year dividend of 18 cents vs 17 cents in FY16/17)
6. ROE remains creditable at 16.2%.
SATS Wins Riyadh Cargo Terminal Concession
* Second cargo terminal operation in Saudi Arabia for SATS after Dammam
* 25 years concession with an annual capacity of up to 600,000 tonnes
* Establishing a quality cargo corridor in the Middle East linking Oman, Dammam and Riyadh
SATS Ltd. (SATS) today announced that its subsidiary, SATS Saudi Arabia Company, has won a 25-year cargo terminal concession in King Khalid International Airport (KKIA) in Riyadh, Saudi Arabia. The Riyadh cargo terminal will be the second cargo operation in Saudi Arabia for SATS, after its first win in King Fahd International Airport in Dammam in 2016.
Construction of the SATS Cargo Terminal in KKIA will take place over two phases with the first phase expected to be completed in mid-2022. Upon full completion, this cargo terminal will have the capacity to handle up to 600,000 tonnes of cargo annually. There will also be a purpose-built cold-chain facility for the special handling of temperature sensitive perishables and a dedicated lane for pharmaceutical products.
MAINBOARD-LISTED aviation services provider Sats has warned that its short-term financial performance could take a hit from the Covid-19 outbreak, while turning in a fall in third-quarter earnings on the back of higher staff, raw material and other costs.
Net profit was down 13.9 per cent year-on-year to S$59.3 million for the three months to Dec 31, 2019, even as revenue grew by 17.6 per cent to S$545.6 million.
The higher turnover came on growth in both the food solutions and gateway services segments, Sats said in financial statements released on Thursday, as it consolidated new units such as Country Foods Pte Ltd and Nanjing Weizhou Airline Food Corp.
Contributions from the newly added Ground Team Red Holdings Sdn Bhd and Ground Team Red Sdn Bhd in gateway services also helped to stem the bloodshed from decreases in cargo volume and ship calls.
But the new subsidiaries also raised staff and raw material costs, while fuel, digitalisation projects, and higher maintenance and hiring expenses for ground support equipment pushed up costs, Sats said.
27-02-2020, 05:23 PM (This post was last modified: 27-02-2020, 05:24 PM by weijian.)
It is getting bad for SATS employees but not surprising since SATS's services should follow immediately after their customers' cut in supply (the airlines)
Pay cuts, voluntary unpaid leave at SATS amid Covid-19
AIRPORT and food services provider SATS has slashed pay for its management team and is letting staff opt for voluntary early retirement and voluntary unpaid leave as pressure mounts from the coronavirus outbreak.
The measures were implemented last Wednesday (Feb 19) to save costs in order to save jobs, SATS told The Business Times on Thursday.
The management team, comprising all vice-presidents and above, are taking the lead with a 10 per cent pay cut, SATS said. Employees aged 55 and above were given the option of early retirement. Staff were also told that they could request to go on voluntary unpaid leave, and that their jobs would not be replaced.
SATS said in a statement: "The Covid-19 epidemic has caused a sharp decline in passenger and cargo volumes across Asia, impacting revenue streams for SATS. We are, therefore, taking proactive steps to mitigate the risks and impact of the situation on our business and our people.
02-03-2020, 07:03 PM (This post was last modified: 03-03-2020, 03:06 AM by sillyivan.)
Since the start of COVID19 outbreak, SATS has dipped from ~$5.15/share to $4/share which equates to a 22% drop. Always felt that this company has one of the very best moat in the whole SGX. Detractors please feel free to air your opinions as I like constructive challenges to prevent myself from falling into false-consensus bias.
- Operating as somewhat a monopoly in its industry, its competitors are so small that it probably has about 80% of market share in APAC?
- Revenue is growing rapidly as mgmt uses M&A with leading operators in other countries
- So far Singapore is still its largest market, but in past few years, it has broken into Japan, China, a whole host of Middle Eastern countries and many others
- Also diversified its catering business out of airline industry and execution seems to be good
The travel industry will only keep increasing in years to come and what better way to play this trend? Airline stocks are far too competitive as every country will always be trying to back its national carrier. Something to do with national pride. In comes SATS working in the background to serve the travel industry.
At $4 share price, PE has fallen to 20. Dividend yield at 4.7%. I personally prefer to buy companies that are value plays (due to lower PE) however a growth company like SATS at PE 20 seems like a steal to me. Growth with sizeable dividend to boot? Even better.
Due to COVID19, we will definitely see SATS business take a big impact in at least Q1/2020 or 1H/2020. However, do I think COVID19 will pose a long term threat to the travel industry and SATS? I doubt. In fact, when the human race recover from this flu virus as we always do (eg. SARS & H1N1). SATS will probably come back with a vengeance as pent-up travel demand will be higher than usual in the immediate aftermath.
Near term catalysts include the Japan Olympics 2020 which will take place in July/August where SATS has invested in catering business and will benefit from the influx of Olympics travelers. Also, due to Singapore having favorable headlines of us tackling the virus with "gold-standard policies", this could give travelers higher confidence coming back compared to other countries in the region.
(02-03-2020, 07:03 PM)sillyivan Wrote: Since the start of COVIT19 outbreak, SATS has dipped from ~$5.15/share to $4/share which equates to a 22% drop. Always felt that this company has one of the very best moat in the whole SGX. Detractors please feel free to air your opinions as I like constructive challenges to prevent myself from falling into false-consensus bias.
- Operating as somewhat a monopoly in its industry, its competitors are so small that it probably has about 80% of market share in APAC?
- Revenue is growing rapidly as mgmt uses M&A with leading operators in other countries
- So far Singapore is still its largest market, but in past few years, it has broken into Japan, China, a whole host of Middle Eastern countries and many others
- Also diversified its catering business out of airline industry and execution seems to be good
The travel industry will only keep increasing in years to come and what better way to play this trend? Airline stocks are far too competitive as every country will always be trying to back its national carrier. Something to do with national pride. In comes SATS working in the background to serve the travel industry.
At $4 share price, PE has fallen to 20. Dividend yield at 4.7%. I personally prefer to buy companies that are value plays (due to lower PE) however a growth company like SATS at PE 20 seems like a steal to me. Growth with sizeable dividend to boot? Even better.
Due to COVIT19, we will definitely see SATS business take a big impact in at least Q1/2020 or 1H/2020. However, do I think COVIT19 will pose a long term threat to the travel industry and SATS? I doubt. In fact, when the human race recover from this flu virus as we always do (eg. SARS & H1N1). SATS will probably come back with a vengeance as pent-up travel demand will be higher than usual in the immediate aftermath.
Near term catalysts include the Japan Olympics 2020 which will take place in July/August where SATS has invested in catering business and will benefit from the influx of Olympics travelers. Also, due to Singapore having favorable headlines of us tackling the virus with "gold-standard policies", this could give travelers higher confidence coming back compared to other countries in the region.
i spent a bit of time looking at sats yesterday and was surprised given how much it has fallen the pe is still 20. the recent run up kind of overshot itself imho. i agree with many of the qualitative points you mentioned it's just not cheap enough for me at 4. just for fun i also compiled the ceo pay n found it doubled over the last 5y. normalized on a graph so its easier to compare the trend w op profit.
Homepage
PR Newswire
