SATS net profit inches 7.4% up to $65.1m

Thanks to lower expenditures.

Despite a lower revenue turnover for the past quarter at $440.9m, SATS reported a 7.4% higher net profit, climbing $65.1m.

This came as the group registered lower expenditures for the quarter, 1.3% lower to $374.2m.

"[This is] due to reductions in most expense categories except staff costs and depreciation and amortisation charges. Staff costs rose $2.6m due mainly to service increment and higher accrual of staff expenses, while the increase in depreciation and amortisation charges corresponded to additional capital expenditure incurred. Cost of raw materials declined $5.8m in view of the lower revenue for Food Solutions. Company premise and utilities expenses were reduced due to lower maintenance expenses as well as lower utility rates and usage," SATS explained.

This has led to an improved operating profit which is 7.9% higher from last year to $66.7m.

SATS recognised that the operating environment could remain challenging as airline bear increasing pressure.

"In line with our strategy of feeding and connecting Asia, we are expanding our inflight catering facilities in Singapore to handle larger batch sizes for the expected increase in volume at Changi Airport. We are also extending our cargo network into the Middle East with projects both in Dammam, Saudi Arabia and Muscat, Oman.," the group noted.