Sats slides over 10% as investors dump shares on profit margin squeeze
The counter opens 7.3% or S$0.35 higher at S$4.42
Sats shares experienced a significant 10.9% decline, dropping to S$4.25 by late morning on Aug 20, 2025, following the release of its first quarter results. Despite a 6.3% decrease from the previous day's opening at S$4.42, the company reported a 6% increase in net profit to S$75.1 million, driven by lower interest expenses. However, this growth marks a slowdown compared to the previous quarter's 9.1% rise.
The operating profit margin for Q1 stood at 8%, impacted by Middle East disruptions to cargo trade and inflationary pressures that hindered operational efficiencies. Additionally, earnings from associates and joint ventures fell by 18.9% year-on-year to S$26.8 million, attributed to lower business volumes due to inflation and nonrecurring provisions.
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