SINGAPORE (May 19): SATS, the provider of gateway services and food solutions, reported a 31.4% rise in 4Q earnings to $66.6 million from a year ago.
Group revenue increased $8.2 million or 2% year-on-year to $425.8 million. Food Solutions’ revenue grew 0.7% to $233.9 million while Gateway Services’ revenue improved 3.6% to $190.4 million.
Group expenditure rose 3.3% to $380 million, with most expense categories increasing year-on-year except for the cost of raw materials and licence fees.
Group operating profit for the quarter declined 7.8% to $45.8 million.
For the full year, earnings grew 16.9% to $257.9 million from a year ago. Revenue was up 1.8% to $1.7 billion.
Share of after-tax profits from associates/joint ventures for the full year was $65.2 million, an increase of 35.8% from last year.
Last June, the group announced the completion of the disposal of its Senoko property asset held for sale, leading to a gain on disposal of $9.3 million in the first quarter.
In its outlook, SATS says uncertainties in world trade flows and intense competition in the aviation industry are putting pressure on airline yields, which could lead to lower margins.
The group has recommended a final dividend of 11 cents per share.
Shares of SATS closed 4 cents lower at $5.24 on Thursday.
