Sats slides over 7% as investors dump shares on profit margin squeeze
The counter opens 7.3% or S$0.35 higher at S$4.42, before paring losses and rising to S$4.47 by 9.12 am
[SINGAPORE] Shares of Sats on Thursday (Aug 20) rose over 7 per cent after the group released its first quarter results the night before.
The counter opened 7.3 per cent or S$0.35 higher 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, after 3.1 million valued at S$13.9 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, a Business Times report on Aug 20, 2025, showed.
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.
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.
