SATS expects 60-70% profit loss in Q4

The group said it may lose as much as $70m for Q1 2021.

SATS anticipates its profits to decline 60-70% for Q4 2020 and a 25% reduction for the full-year profits for the financial year ending on 31 March, the group stated in an SGX filing.

The group said that it may also lose $50m and as much as $70m for Q1 FY2021, as the pandemic continues to impact the group’s operations. Operating volumes of flights, passengers handled and meals have dropped 95% from pre-COVID levels, according to SATS.

SATS plans to release its full-year unaudited results on or before 30 July, relying on the SGX waiver granting a two-month extension for the release of full-year unaudited results.

However, the group assured that it remains at a positive net cash position, having recently secured an aggregate debt financing of $500m for its working capital needs, cash reserve and growth initiatives.

The profit warning is based on a preliminary review of the group’s unaudited financial results for Q4 2020.