Sats slides over 10% as investors dump shares on profit margin squeeze

[SINGAPORE] Shares of Sats on Thursday (Aug 20) rose over 10 per cent after the group released its first quarter results the night before.

The counter opened 7.3 per cent or S$0.35 lower at S$4.42, before paring losses and rising to S$4.47 by 9.12 am, still down 6.3 per cent or S$0.30.

Sats shares slumped by 10.9 per cent to reach S$4.25 at 10.56 am, after 13.6 million securities valued at S$59.3 million changed hands.

Sats reported a S$75.1 million net profit for Q1, up 6 per cent from S$70.9 million in the same year-ago period, on the back of partial support from lower interest expenses.

This however, is a lower year-on-year earnings growth, considering how the group’s net profit was up 9.1 per cent from S$65 million in Q1 FY2025, The Business Times reported on Aug 20, 2025.

Its operating profit margin for Q1 was 8 per cent, as Middle East-related disruptions to cargo trade flows and flight activity tempo, alongside inflationary pressure, weighed on efficiencies and margins.

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Sats Q1 net profit up 6% at S$75.1 million on cargo growth

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Additionally, the gateway services and food solutions provider’s share of earnings from associates and joint ventures fell 18.9 per cent year on year to S$26.8 million, a Wednesday statement noted.

This was on the back of lower business volumes driven by inflationary pressure on certain carriers and nonrecurring provisions.