Sats files notice of 3 straight years of losses

SINGAPORE – In-flight caterer and ground handler Sats has given notice that it has recorded three consecutive years of losses.

Based on audited full-year consolidated accounts, the mainboard-listed group recorded pre-tax losses for the last three consecutive financial years, it said in a bourse filing on Nov 26.

However, Sats will not be placed on the Singapore Exchange (SGX) watch list, as its six-month average daily market capitalisation was nearly $3.9 billion as at Nov 23.

According to rules under SGX’s listing manual, mainboard-listed companies will be placed on the watch list if they record pre-tax losses for the three latest consecutive financial years, and if they fail to maintain an average daily market cap of at least $40 million over the last six months.

On Nov 10, Sats released its results for the first half of FY2024 ended September, posting a net loss of $7.8 million.

This was a narrowing from its net loss of $32.5 million in the corresponding year-ago period.

For the second quarter of the financial year, Sats posted a net profit of $22.2 million – its first earnings without government relief since the Covid-19 pandemic struck in early 2020.

It had posted a net loss of $29.9 million for Q1.

The improvement in financial performance in Q2 came on the back of a year-on-year increase in the top line of about 7 per cent, to about $1.3 billion. Management attributed the better quarterly performance to an increase in business volumes, yield management as some cost increases have been passed on to customers, and productivity enhancements.

As at the end of September 2023, flights handled and in-flight meals served returned to 82 per cent and 83 per cent of pre-Covid levels, respectively.

Sats closed $0.03 lower on Nov 24 at $2.71. THE BUSINESS TIMES