CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

SATS share price plunge 2.49% after posting a 23.7% fall in Q4 profit

The group’s net profit for the period fell by S$15.5 million from a year ago to S$49.9 million, due to the absence of one-off gains made a year ago.

In-flight catering service provider SATS reported a 23.7% fall in net profit for the fourth quarter, due to the absence of one-off gains made a year ago.

The group’s net profit for the period fell by S$15.5 million from a year ago to S$49.9 million. For this quarter, SATS received a one-off write back of S$1.2 million tax provision for the disposal of DFASS SATS to KrisShop.

Excluding the one-off write back received this quarter, net profit would have been at S$48.7 million.

One-off items a year ago include a S$11.6 million surplus arising from the finalisation of valuation of the group's associate, Evergreen Sky Catering.

Earnings per share for the quarter came in at 4.5 Singapore cents, compared to 5.9 Singapore cents in the same period a year ago.

SATS share price

The firm which had posted its quarterly results before the market opened on Friday, saw its shares sink 2.49% or S$0.13, to S$5.09 by 2.20pm Singapore time.

The firm had closed higher on Thursday, up by one Singapore cent or 0.19%, at S$5.22.

Year-to-date, SATS shares have risen by 9.5%.

SATS earnings report highlights

SATS said its revenue for the quarter grew 11.3% to S$471.5 million, supported by higher contributions from its food solutions and gateway services businesses.

For the full-year, the company’s revenue rose 6% to S$1.83 billion while net profit eased 5% to S$248.4 million.

SATS’ board has recommended a final dividend of 13 Singapore cents, up one Singapore cent compared to the final dividend of 12 Singapore cents last year. Including an interim dividend of six Singapore cents, total dividend stands at 19 Singapore cents per share.

Going forward, SATS said that the demand for aviation services and ‘high quality food’ in Asia-Pacific continues to grow even as the global economy faces challenges.

The group said it has secured a long-term contract with Singapore Airlines to support them in their transformation plans, and that it will continue to invest in new opportunities in Asia-Pacific's major cities, claiming that its recent investments in India and Malaysia are showing steady growth.

SATS takes up 50% stake in Chinese food company

In a separate announcement on Friday, the firm announced that it is buying a 50% stake in China’s Nanjing Weizhou Airline Food Company for S$31.2 million.

The move will support SATS in gaining frozen food production capabilities and market access in China.

Under the deal, SATS China Co will acquire a 45% stake in the food company for about S$25.5 million. The balance of 5% will be made through the subscription of about S$5.7 million of new shares.

Nanjing Weizhou is an independent aviation food manufacturer in Jiangsu province that produces frozen food and related food components to aviation companies in the country.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.