SATS Q2 profits down 9% to $65.7m

It continued to be hit by the absence of the $7m gain from the disposal of SATS HK.

SATS’ profits for the second quarter dipped 9% to $65.7m from $72.2m in the same period last year. According to its financial statement, revenue rose 4.2% to $453.1 from $434.8m.

The company found volume growth in its food solutions and gateway services. Revenue from food solutions jumped 2.5% to $250.9m whilst gateway services’ revenue rose 6.3% to $201.6m.

Net profit fell in the absence of the $7m gain on disposal of assets held for sale comprising the deconsolidation of SATS HK (SHK) and the restructuring of Jilin Zhong Xin Cheng Food Co., Ltd. and SG IPF Pte. Ltd. as well as lower contribution from associates and joint ventures. The share of results from associates/joint ventures was fell 22.2% to $14m.

Excluding the one-off gain of $7m on disposal of assets, underlying net profit marginally rose 0.8% to $65.7m.

“In the near term, trade tensions and weakening sentiment are impacting emerging market currencies and trade volumes,” the company said. “At the same time, higher oil prices and competition in the airline industry will continue to result in pricing pressures on SATS.”

SATS declared an interim dividend of 6 cents per share payable on 7 December 2018