SATS posts 7.6% lower Q2 net profit of S$60.7m

SATS on Tuesday announced that net profit for the second quarter ended Sept 30 fell 7.6 per cent on lower cargo volumes and investments in growth initiatives.

Net profit was S$60.7 million compared with S$65.7 million a year ago, while revenue improved 9.8 per cent to S$497.4 million. Earnings per share was 5.4 Singapore cents, down from 5.9 cents in the second quarter of the previous financial year.

For the half-year ended Sept 30, net profit fell 11 per cent to S$115.4 million from S$129.6 million year-on-year. Revenue grew 7.8 per cent to S$962.5 million.

Earnings per share was 10.3 Singapore cents compared with 11.6 cents a year ago.

SATS has declared an interim cash dividend of six cents per share, which was the same amount declared in the corresponding period of the previous year. The dividend is payable on Dec 11.

While the slowdown in trade and economic growth is resulting in weaker cargo volume in key markets, SATS continues to invest in growth opportunities such as its subsidiaries GTR and Country Foods, it said.

SATS shares closed flat at S$5.09 on Tuesday before the results were announced.