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Straits Times
9 hours ago
- Business
- Straits Times
Sats ‘confident' in navigating tariff situation, says chief executive Kerry Mok
– Sats, the Singapore-listed air cargo handling services provider, is confident in facing any disruptions of the global trade war being waged by the US, Mr Kerry Mok, the company's president and chief executive, said on June 3. Speaking to The Straits Times on the sidelines of the Air Cargo Europe trade show, Mr Mok said he views the tariff situation as 'another macroeconomic challenge that we have to handle' that is similar to navigating the pandemic. Air Cargo Europe is being held in Munich until June 5. Sats is the world's largest air cargo handler, following its acquisition of Paris-based global air cargo logistics provider Worldwide Flight Services (WFS) in 2023 at a cost of €1.3 billion (S$1.8 billion). Its global footprint includes 215 cargo and ground handling stations in 27 countries, covering trade routes responsible for more than 50 per cent of global air cargo volume. Mr Mok said his confidence stems from 'the playbook that we have developed through Covid, (which) has served us well'. So far, air cargo volumes have not been affected by hefty tariff increases, possibly because of front-loading by businesses to get their goods off the ground during the 90-day reprieve, he said. On May 12, China and the US agreed to lower reciprocal tariffs to 10 per cent for 90 days while they commit to trade talks. While it is uncertain what will happen after the 90 days, Mr Mok said he expects that Sats, as a global company, will be able to weather the storm. A part of the business that is not doing well could be propped up by other parts of the business that are unaffected, he said. 'In a networked environment, if US volumes drop, Europe's volume increases, Asia volumes may increase,' he said. Because Sats has a global network, it may in fact benefit from a rise in volumes elsewhere, he added. Total demand for air cargo rose by 5.8 per cent in April 2025, compared to April 2024 levels, according to data released by the International Air Transport Association (IATA) . Its director-general also said the outlook for air cargo is encouraging, though 'stresses in world trade are no secret'. One of the lessons to come out of the Covid-19 pandemic is that air cargo was 'a shining spot' for many airlines and companies, said Mr Mok. When Sats was looking to expand, 'we identified cargo as a segment for expansion, because cargo is global ... and our customers operate in a global environment'. Sats offers airport services like airfreight handling, passenger services, and ground handling. It is also a major airline caterer and provider of food solutions to other institutions. 'We can't just stay big in Singapore and then be happy with that,' he said. Mr Mok said the WFS acquisition made sense because 'we are the leader in Asia Pacific, and they are market leaders in the US, the Americas and in EMEA (Europe, Middle East, and Africa) , and we have very little overlap'. Nonetheless , Mr Mok said, the acquisition was not without its naysayers. 'People said there's no chance… that Singapore companies always fail when they go overseas,' he said. But Sats took a long-term view, rather than focus on short-term profits and liabilities. 'That's not how we run the business,' he said. 'I think people are now starting to understand that it's working financially. We're now back on track,' he said. In May, Sats reported a net profit of $38.7 million for the three months ended March 31, 2025, gaining 18.3 per cent from $32.7 million in the corresponding year-ago period. Revenue for the fourth quarter was $1.5 billion, up 10.4 per cent year-on-year from $1.3 billion. This was driven by continued business volume growth and rate improvements, said Sats in a media release in May. On a full-year basis, the group reported profit of $243.8 million, soaring more than four times from $56.4 million a year ago. Revenue came in at $5.8 billion, gaining 13 per cent from $5.1 billion a year ago. Terminal 5 Turning to Terminal 5, Mr Mok said Sats will 'play a big part in the design of T5', particularly in the area of technology. In May, Sats announced that it would be investing over $250 million to upgrade its ground operations and cargo handling infrastructure at Changi Airport ahead of the opening of T5 in the mid-2030s. An expansion project more than a decade in the making, T5 will position Changi Airport to ride a predicted surge in air travel within the Asia-Pacific and beyond. Designed to handle about 50 million passengers a year, T5 will effectively double the size of Changi Airport and boost its current capacity of 90 million by more than 55 per cent. The Changi East development, where T5 is located, will also house the Changi East Industrial Zone, which will almost double the airport's annual cargo handling capacity from three million tonnes to 5.4 million tonnes. Mr Mok said the investment would refresh Sats' operations and bring in new equipment, with the goal of driving up productivity. 'We've got to find new technologies, new ways that will allow us to be efficient in driving the growth of T5,' he said. The solutions will not be those that exist today, he promised, noting that Sats can tap global network and the trials it has going on around the world. For example, a WFS cargo facility in Barcelona is testing automatic guided vehicles as part of an initiative to incorporate automation and improve efficiency, safety and productivity. 'It's important that T5 succeeds, and we want to play a big role in making that work for Changi,' Mr Mok said. Vanessa Paige Chelvan is a correspondent at The Straits Times. She writes about all things transport and pens the occasional commentary. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
26-05-2025
- Business
- Straits Times
Singapore shares fall amid mixed regional showing; STI down 0.2%
The benchmark Straits Times Index fell 0.2 per cent or 6.82 points to 3,875.60. PHOTO: ST FILE SINGAPORE - Shares on the Singapore bourse ended lower on May 26, even as regional markets ended mixed. The benchmark Straits Times Index (STI) fell 0.2 per cent or 6.82 points to 3,875.60. Across the broader market, decliners edged out gainers 268 to 220, after 894.4 million securities worth $751.7 million were traded. The top gainer on the index was in-flight caterer Sats, which rose 2.3 per cent or seven cen ts to $3.05. The biggest blue-chip decliner was offshore and marine specialist Seatrium. The counter slid 1.4 per cent or three cents to $2.04. Genting Singapore was the most actively traded counter by volume, with 30.3 million shares worth $21.3 million traded. The counter fell 1.4 per cent or one cent to $0.70. Markets across the region ended mixed. Hong Kong's Hang Seng Index fell 1.4 per cent while Australia's ASX 200 ended flat. South Korea's Kospi and Japan's Nikkei 225 gained 2 per cent and 1 per cent, respectively. In view of the mixed Asian markets, Mr Paul Chew, head of research at Phillip Securities, said the US administration's 'constant flip-flops' in tariffs and policies will keep any business exposed to America hesitant to invest in inventories or capacity. 'The ever-present threat of tariffs only raises the risk premium of any manufacturer exposed to the US markets, especially semiconductor companies,' said Mr Chew. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
26-05-2025
- Business
- Business Times
Singapore shares fall amid mixed regional showing; STI down 0.2%
[SINGAPORE] Shares on the Singapore bourse ended lower on Monday (May 26), even as regional markets ended mixed. The benchmark Straits Times Index (STI) fell 0.2 per cent or 6.82 points to 3,875.60. Across the broader market, decliners edged out gainers 268 to 220, after 894.4 million securities worth S$751.7 million were traded. The top gainer on the index was in-flight caterer Sats , which rose 2.3 per cent or S$0.07 to S$3.05. The biggest blue-chip decliner was offshore and marine specialist Seatrium . The counter slid 1.4 per cent or S$0.03 to S$2.04. Genting Singapore was the most actively traded counter by volume, with 30.3 million shares worth S$21.3 million traded. The counter fell 1.4 per cent or S$0.01 to S$0.70. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Markets across the region ended mixed. Hong Kong's Hang Seng Index fell 1.4 per cent while Australia's ASX 200 ended flat. South Korea's Kospi and Japan's Nikkei 225 gained 2 per cent and 1 per cent, respectively. In view of the mixed Asian markets, Paul Chew, head of research at Phillip Securities, said the US administration's 'constant flip-flops' in tariffs and policies will keep any business exposed to America hesitant to invest in inventories or capacity. 'The ever-present threat of tariffs only raises the risk premium of any manufacturer exposed to the US markets, especially semiconductor companies,' said Chew.
Business Times
26-05-2025
- Business
- Business Times
Stocks to watch: Sats, The Hour Glass, Japan Foods, Manulife US Reit
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Monday (May 26). Sats : The in-flight caterer on Friday reported net profit of S$38.7 million for the three months ended Mar 31, 2025, gaining 18.3 per cent from S$32.7 million in the corresponding year-ago period. This indicates earnings per share of S$0.026 for the quarter, compared with S$0.022 in Q4 FY2024. Revenue for the fourth quarter was S$1.5 billion, up 10.4 per cent year on year from S$1.3 billion, driven by growth in business volume and rate improvements. The group has proposed a final dividend of S$0.035 per share, which will be paid on Aug 15. This is higher than the final dividend of S$0.015 per share in the corresponding year-ago period. Shares of Sats ended flat at S$2.98 on Friday. The Hour Glass : The retailer of luxury watches reported a 6 per cent drop in net profit to S$74.4 million in the six months ended March 2025, from S$79.5 million in the year-ago period. Revenue was at S$622.6 million, up 9 per cent year on year from S$571.3 million. Earnings per share stood at S$0.1148 for the half-year period, down from S$0.1217 previously. The luxury watch retailer said on Friday that for the full year, profits had been affected by increased operating expenses driven by inflationary pressures on rents and wages combined with a fair value adjustment on investment properties. Shares of The Hour Glass closed flat at S$1.61 on Friday, before the results were released. Japan Foods : The restaurant operator on Sunday reported a loss of S$6.2 million for the second half year ended Mar 31, 2025, sinking further into the red from a loss of S$576,000 in the corresponding year-ago period. This comes as the group's revenue for the half year slid 7.5 per cent year on year to S$40.2 million, from S$43.4 million. The group attributed this to 'tough market conditions', as existing brands, including Yakiniku Shokudo, Ajisen Ramen and Menya Musashi, generated lower revenue. Loss per share for the period stood at S$0.036, compared to a loss per share of S$0.0033 in H2 FY2024. The group did not declare a final dividend, despite declaring a S$0.002 dividend per share in H2 FY2024. Shares of Japan Foods climbed 2.4 per cent or S$0.005 to S$0.215 on Friday. Manulife US Real Estate Investment Trust (MUST) : The manager of the Reit's US office on Friday announced it has received approval from lenders to extend the deadline for the disposal of assets by six months to Dec 31. The Reit will use US$25 million in cash, in addition to proceeds from the sale of a Class A office building Peachtree in Atlanta, US, to partially pare down debts due in 2026, 2027 and 2028. The extension will give MUST more time to meet obligations under the Master Restructuring Agreement. Units of MUST closed 1.6 per cent or US$0.001 higher at US$0.062 on Friday, before the announcement.
Straits Times
23-05-2025
- Business
- Straits Times
Sats Q4 profit rises 18.3% to $38.7 million
Sats has proposed a final dividend of 3.5 cents per share, which will be paid on Aug 15, after shareholder approval. PHOTO: SATS SINGAPORE - In-flight caterer Sats on May 23 reported net profit of $38.7 million for the three months ended March 31, 2025, gaining 18.3 per cent from $32.7 million in the corresponding year-ago period. Revenue for the fourth quarter was $1.5 billion, up 10.4 per cent year on year from $1.3 billion. This was driven by continued business volume growth and rate improvements, said Sats in a media release. The group has proposed a final dividend of 3.5 cents per share, which will be paid on Aug 15, after shareholder approval. The book closure date is Aug 1. This is higher than the final dividend of 1.5 cents per share in the corresponding year-ago period. For the second half ended March 31, profit climbed 70.2 per cent to $109.1 million, from $64.1 million. The latter figure has been reclassified, as the group changed the classification of operating expenses in the condensed interim consolidated income statement to provide better clarity and understanding of its expenses. The profit translates to an earnings per share of 7.3 cents , compared with 4.3 cents . Revenue for the six months was $3 billion, up 11.4 per cent from $2.7 billion. On a full-year basis, the group reported profit of $243.8 million, soaring more than four times from $56.4 million a year ago. Revenue came in at $5.8 billion, gaining 13 per cent from $5.1 billion a year ago. Commenting on the results, Sats president and chief executive Kerry Mok said: 'We captured $103 million in Ebitda (earnings before interest, taxes, depreciation and amortisation) integration synergies in just two years, driven by the strength of our platform and disciplined execution.' He highlighted 'notable customer wins across (Sats') network, including multiple new cargo and ground handling contracts secured with key customers such as Air India, Emirates and DHL in major airports'. Mr Mok added that the group recently announced a phased investment of over $250 million for Singapore Hub to upgrade ground operations and cargo handling infrastructure. 'This reflects our continued focus on operational excellence and our role in strengthening the broader Changi Airport ecosystem,' he said. Shares of Sats ended flat at $2.98 on May 23. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
