Sats Q1 net profit up 6% at S$75.1 million on cargo growth
Increase in net profit is partially supported by lower interest expense
Singapore-based Sats reported a 6% increase in net profit to S$75.1 million for the first quarter of the year, compared to S$70.9 million a year ago. This growth was driven by higher cargo volumes and lower interest expenses. The company's revenue also rose 11.3% to S$1.7 billion, up from S$1.5 billion in the previous year. Sats' president and CEO, Kerry Mok, attributed the revenue surge to strong cargo volume growth in all regions, including an 8.6% increase globally amid ongoing geopolitical instability.
The Asia-Pacific region saw an 8.5% increase, while Europe, Middle East, and Africa grew 8.2%. The Americas region had the highest growth at 9.5%. The Middle East conflict briefly disrupted some cargo and flight flows, but rerouting through alternative corridors led to overall year-on-year volume growth. The increase in revenue was also aided by a 4% rise in flights handled, particularly in the Americas region due to a new contract with Air France-KLM.
However, higher fuel costs resulted in a 5.1% dip in flights handled in the Asia-Pacific region. Despite these challenges, Sats remains confident in its diversified global network and business portfolio, positioning the company for long-term value creation for shareholders.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
