SATS Ltd *Official* (SGX: S58)

[Shion]

Sats wins contract from Air Canada as the carrier resumes flights to Changi Airport​

https://www.theedgesingapore.com/ne...canada-carrier-resumes-flights-changi-airport

Sats has been awarded a passenger, ramp and cargo handling contract from Air Canada, a member of the Star Alliance network. The move comes as Air Canada prepares to resume flights from Vancouver to Singapore’s Changi Airport for the first time in over 30 years.

Air Canada will launch four Boeing 787-9 flights a week between the Canadian city and Singapore from April 4 onwards, providing the only non-stop service connecting both countries.

Sats currently handles all the partners under the Star Alliance programme in Singapore, which enables the airline the benefit of benefit of seamless passenger and cargo connections beyond Singapore to other key airports across Southeast Asia.

According to Sats, the contract also extends Air Canada’s global partnership with Sats and Worldwide Flight Services (WFS), now a member of the Sats group.

“We are delighted to welcome Air Canada back to Singapore and proud that the airline has chosen to extend its partnership with Sats into Southeast Asia. This is another significant business win for Sats at Changi Airport, reinforcing the good and longstanding partnership with Air Canada as a major customer of WFS,” says Bob Chi, CEO of gateway services at Sats.

“Air Canada and its customers will benefit from our combination of operational excellence and global network connectivity,” he adds.

As at 4.54pm, shares in Sats are trading flat at $2.54.

 

[stanlawj]

SATS is being defended at $2.37 - $2.44 by someone.
Furthermore, Temasek Holding is major shareholder. Could be linked to this.

Will it bounce up from here?

 

[Shion]

Ground handling firm Sats defers new air cargo fee a second time to Aug 1 amid continued pushback​

https://www.straitstimes.com/singap...-second-time-to-aug-1-amid-continued-pushback

SINGAPORE – A new four-cent fee that ground handling firm Sats plans to impose on every kilogram of inbound air cargo it processes in Singapore has been deferred for a second time until Aug 1.

Originally meant to kick in on April 15, the new charge had been delayed by a month to May 15 after industry players pushed back against the move, which they say will add to inflation and introduce inefficiency in the supply chain.

Sats announced the second deferral in a circular issued to the industry on April 26.

“We have considered your suggestions, and will agree to requests raised by the industry for more time to make the necessary arrangements to administer the new fee,” said Sats in the circular.

The ground handler also said it has renamed its new fee, which will now be called a “cargo terminal collection fee”, instead of an “import handling fee”, to better reflect the work required for handling, processing and securing inbound cargo.

The decision to delay the new fee by another 2½ months came after Sats held a two-hour, closed-door townhall meeting on April 19 at Downtown East with about 90 representatives from the air cargo industry to address their concerns.

Attendees told The Straits Times that the general mood was one of frustration and resignation. Those interviewed noted that the new fee will increase administrative expenses and bemoaned the higher cost, which they say may ultimately be passed on to consumers.

They also said that the higher costs could impact the competitiveness of Changi Airport as an air cargo hub and questioned why airlines – the direct customers of cargo terminal operators like Sats – are not being made to shoulder the burden.

In a statement to ST after the townhall, Sats pledged that it will not impose any other new charges or increase existing fees for freight forwarders in Singapore until March 31, 2025. It also reiterated an earlier promise to not raise the new four-cent fee for at least two years.

While it is common practice to charge terminal or processing fees on inbound air cargo, and such fees are levied in most major airports including Kuala Lumpur, Bangkok and Hong Kong, it is the first time that a ground handler in Singapore is introducing it.

Industry players said that given Sats’ dominant position in the ground handling sector here, they fear that its only other competitor in Singapore – dnata – will follow suit and impose a similar fee in future.

When asked about this, dnata declined to comment.

One industry insider who was at the April 19 meeting noted the knock-on effects that the additional fee will have on some clients, such as those dealing in perishables. One example is the meat that is flown into Singapore for the annual Hari Raya Haji ritual of korban.

Another attendee, a logistics manager for an international company, said he understands why Sats needs to increase its rates, but felt it should be incorporated into the overall freight cost that airlines pay rather than charged as a separate fee.

He added: “As a shipper, the cost will eventually fall back to us. But I think it is not going to make the whole ecosystem efficient... What makes Singapore unique? What’s going to make us a competitive hub? We will be no different from Thailand and Malaysia.”

Both declined to be named as they were not authorised to speak to the media.

Sats told ST that the primary objective of the new fee is to partially cover its rising operating costs, which have increased significantly post-Covid-19 due to inflationary pressures.

This is especially so for its manpower expenses, which Sats Gateway Services chief executive Bob Chi said are crucial for hiring and retaining workers in hard-to-recruit positions that require shift work.

“The financial sustainability of our cargo operations in Singapore is crucial to our ability to support air hub operations, as we process more cargo and are held to ever higher customer expectations amid global competition,” he added.

Sats said its business costs have gone up by as much as 30 per cent, and continue to rise. It noted, for example, that its manpower costs are up 25 per cent due to an acute labour shortage, while security costs have risen by as much as 50 per cent.

Mr Chi said Sats intentionally kept its new fee low to minimise the impact on the air cargo sector and the competitiveness of Singapore’s air hub. He also noted that a charge of four cents per kilogram is the lowest among regional airports.

He added that Sats is cognisant of the fact that inflationary pressures have driven up costs for all parties in the air cargo industry. Hence, the company’s approach is to get everyone, including airlines, to play a part in defraying these cost increases.

ST understands that for airlines, this will be done via contract negotiations, which are ongoing.

 

[Shion]

Sats aims to increase revenue to $8b by 2028 in its next phase of expansion​

https://www.straitstimes.com/busine...to-10b-by-2028-in-its-next-phase-of-expansion

SINGAPORE - Mainboard-listed aviation cargo and food specialist Sats is embarking on an ambitious plan to increase revenue by about 60 per cent to $8 billion over the next four years, as it works to build on its sterling set of full-year results that exceeded expectations.

Notably, the group is banking on the synergies that it will derive from the successful integration of its 2022 acquisition of European air cargo player World Flight Services (WFS), earnings of which it has consolidated for the first time in its latest results.

This next phase of expansion – dubbed “transform and perform” – is expected to see the group take a trajectory with an annual compounded growth rate of more than 6 per cent over the medium term.

Already, the impact of WFS’ contributions is clear.

Revenue almost trebled from $1.76 billion for 2023 to $5.15 billion for the year under review. At the same time, profit after tax and minority interests (Patmi) – or profits due to Sats and its shareholders after accounting for minority stakeholders – reached $56.4 million, reversing from a loss of $26.5 million for the corresponding period a year ago.

Speaking at a results briefing on May 30, Sats chief executive officer Kerry Mok said: “We have a clear strategy for each of the group’s business lines, and we have a strong operating platform from which to do it.”

He said there were five strategic priorities aimed at delivering value creation.

These are growing revenue to underpin sustained business growth; driving operating leverage through better cost efficiency and productivity; rationalising its portfolio; repaying debt while optimising cash flow; as well as returning value to shareholders.

Mr Mok summarised this as Sats’ 3Rs: repay loans, re-invest in capital expenditure and resume dividends. On that last point, the group declared a final dividend of 1.5 cents per share for the full year to March 31.

He said that because the group is on “a growth path”, it could not go back to the previous dividend policy of 70 per cent to 80 per cent of underlying net earnings.

Mr Mok added: “While we want to reward shareholders, we have better uses for that capital.”

CGS International equity research analyst Tay Wee Kuang said: “The resumption of dividends is a sign of confidence... management has done well to communicate that expectations should be tempered with priorities to repay debt and re-invest in capital expenditure for the next year.”

Mr Tay added that he was pleasantly surprised by Sats’ quarter-on-quarter improvement in net profits, despite seasonally lower revenues.

“Contribution from its associates and joint ventures have grown from strength to strength, even higher than pre-Covid levels. Meanwhile, cost management seems to have reaped benefits as well, enhancing the group’s profitability profile,” he said.

Commenting on the group’s plans, Mr Tay said: ”I believe with the newfound capabilities as a global cargo leader with a diversified exposure, there is potential for Sats to work towards the goal.”

He said, however, that he was cognisant of “the cyclicality affecting the industry, which is heavily dictated by the global macroeconomic outlook”.

DBS equity research analyst Jason Sum said: “The strategy that they’ve laid out does appear sound, in our view.”

However, he added that their long-term targets for revenue and return on equity, a measure of profitability, “certainly appear ambitious”.

Mr Mok closed the briefing with a promise of more to come when Sats hosts its capital markets day this November.

“We are very optimistic about the way forward,” he said.

Sats’ shares closed 6 per cent higher at $2.79 on May 30, with 27.7 million shares traded – the highest volume since Jan 30.

 

[Overture1928]

C-c-chiong ar

 

[yslvlys]

So the WFS acquisition is now working out..

 

[stanlawj]

international air travel to slow down in the coming quarters as compared to previous quarters. Previously juiced up by massive US govt spending and tax refunds.

 

[Overture1928]

So the WFS acquisition is now working out..

Think it was the way it was financed than the quality of the acquisition

 

[Shion]

Sats forms new unit in first major push to run ground-handling services at foreign airports​

https://www.straitstimes.com/singap...in-an-effort-to-expand-asia-pacific-footprint

SINGAPORE - Ground handler and in-flight caterer Sats is starting a new business unit in its first major push to operate ground-handling services at foreign airports, with a focus on the Asia-Pacific region.

It is doing so by restructuring its largest division, Gateway Services, to form two new units, Gateway Services Asia-Pacific and the Singapore Hub, the company announced on July 10.

Its Gateway Services business provides ground-handling services, such as passenger and aircraft handling, and baggage, security and cargo-handling services.

Sats said Gateway Services Asia-Pacific will grow the group’s market share in the region and manage its operations at foreign airports, including its network of overseas stations in the Asia-Pacific, via its subsidiaries, joint ventures and associates.

The Singapore Hub will drive “aviation hub competitiveness in Singapore” and beef up the group’s ability to support the current and future needs of Changi and Seletar airports, and the aviation industries at both airports, Sats said.

“The Gateway Services restructuring reflects the strategic decision by Sats to continue investing in Singapore, while scaling its international presence to capture growth opportunities overseas,” the company said.

Mr Bob Chi, chief executive officer of its Gateway Services business, will helm Gateway Services Asia-Pacific as CEO. Sats chief operating officer Henry Low will become CEO of its Singapore Hub business unit.

Both appointments will be effective from Oct 1.

Sats president and CEO Kerry Mok said the restructuring of Gateway Services is “aligned with our overarching goal and ambition to accelerate Sats’ growth into a global multinational corporation”.

He said the growth of the air cargo business globally, driven by the rising volume of e-commerce in recent years, was an opportunity for the company to expand its global network.

Having this network would also be an advantage when shipping high-priority cargo.

At a press briefing on July 10, Mr Mok gave the example of an urgent shipment out of Brussels in Belgium, where Sats has a presence through its subsidiary. The company could coordinate the loading of the aircraft and pass information along to its counterparts in Singapore to ensure it would be accorded priority in handling after the plane arrived here.

Mr Chi told reporters that India, where Sats has partnered with Air India in a joint venture called AISATS, was a key market it has its eye on. He noted that Air India is in the process of expanding its fleet, and the potential for growth in the airline’s existing businesses is very good.

“There are also new airports that are being opened within India, and privatisation (of other airports) is also taking place. So that opens up opportunities for us,” he added.

Indonesia is another country with potential. Mr Chi said its Indonesian joint venture PT Jas, which deals in ground handling, has a market share of nearly 70 per cent, and there remains tremendous potential for growth on account of the country’s large hinterland.

Mr Chi said the restructuring of Gateway Services came against the backdrop of Changi Airport’s expansion, with Terminal 5 in the works. Sats’ new Singapore Hub unit will now be able to focus on transforming its labour force to get it ready for a digital, automated future, he added.

“That’s why we think that having a dedicated CEO (for the Singapore Hub) is important to see this project through and execute it well, without having the distraction of having to grow the Apac business (at the same time).”

Mr Low said it is a must to increase automation in Sats’ operations here, noting that as Changi Airport doubles in size, increasing its workforce by the same extent was not an option.

Previously known as Singapore Airport Terminal Services, Sats was established in 1972 as a subsidiary of national carrier Singapore Airlines. It was divested from its former parent company in September 2009.

It started its overseas ventures as early as 1993 by forming joint ventures in China.

In 2023, the company acquired global air cargo logistics company Worldwide Flight Services, which means it now provides services to 215 locations in 27 countries in North and South America, Europe, the Middle East, Africa and Asia.

Sats posted a record revenue of $5.1 billion and earnings of $56.4 million for the 2024 financial year to March, against a net loss of $26.5 million in the period a year ago.

 

[Shion]

Sats to expand partnership with China’s SF Group to more global locations​

https://www.straitstimes.com/busine...ith-china-s-sf-group-to-more-global-locations

SINGAPORE – Air cargo handler Sats is looking to take its partnership with Chinese express delivery and logistics service provider SF Group to more global locations, under a newly signed memorandum of understanding.

The companies will leverage their areas of expertise and service offerings as well as those of their affiliate companies – including Sats’ Worldwide Flight Services and SF Group’s cargo carrier SF Airlines – through strategic collaboration and supply chain optimisation, Sats said on July 16.

Its announcement described SF as the world’s fourth-largest – and China’s largest – integrated logistics service provider.

Sats and SF’s collaboration in existing hub operations in Singapore and e-commerce handling in Liege, Belgium, will be extended to other global hubs, including Kuala Lumpur, Malaysia, for a start. The companies would also explore proof of concepts for e-commerce handling in Beijing, China, and at New York’s John F. Kennedy International Airport.

They will also identify and build other network solutions or specialised services from more than 200 locations where Sats is present with SF Group’s extensive demand channels. This came after Sats restructured its gateway services business into two new business units: Singapore Hub and Gateway Services Asia-Pacific.

The global e-commerce market is forecast to be worth US$6.3 trillion (S$8.5 trillion) in 2024, and US$7.9 trillion in 2027, Sats said in the statement.

Sats shares fell 0.6 per cent to $3.32 on July 16. THE BUSINESS TIMES

 

[Shion]

Sats to partner Japan’s Mitsui in expanding its food solutions business​

https://www.straitstimes.com/busine...tsui-in-expanding-its-food-solutions-business

SINGAPORE - Sats will partner Japanese trading and investment company Mitsui & Co to develop and grow their respective food and retail solutions businesses.

A wholly owned subsidiary has been established as a holding vehicle through which the two will jointly pursue potential food solutions-related investments, the airport services provider said in a bourse filing on July 18.

As part of the deal, Mitsui will pay about $36.4 million for a 15 per cent stake in the subsidiary, Food Solutions Sapphire Holdings, which will include four of Sats’ indirect wholly owned food solutions entities. The amount also accounts for certain loans and bonds related to Sats’ food solutions entities.

The deal was made on a willing-buyer, willing-seller basis, taking into consideration the current financial position and future growth prospects of the four entities, Sats said.

The company said its “strategic collaboration” with Mitsui aims to “enhance the food value chain” of both companies by leveraging Mitsui’s global network and Sats’ expertise across the entire process, from raw material procurement to end-customer delivery.

The partnership will focus on expanding the food solutions business in key Asian markets through joint initiatives in product development, central kitchen production and distribution logistics, said Sats. The aim is to unlock new opportunities and expand Sats’ market reach, “boosting volumes” for the company’s operations and optimising asset utilisation rates, it said.

The move is not expected to have any material impact on the group’s consolidated net tangible assets per share or consolidated earnings per share for the current financial year ending March 2025. In the meantime, Sats said the partnership is already yielding tangible results, especially in Mitsui’s home market, Japan.

“Several joint initiatives are currently in progress,” it said. For instance, a Sats subsidiary is in discussions with a food services subsidiary under Mitsui Group to supply food components. The same Sats subsidiary has also begun supplying food components to prominent retail channels – including Kinokuniya and JR East.

Additionally, plans are in progress to supply frozen meals to Muji Japan, with a targeted launch in the first quarter of 2025.

Mr Stanley Goh, Sats chief executive, said the company already has the capacity and expertise to “ideate, innovate and manufacture” a wide range of high-quality ready-to-eat food products.

Mr Goh believes that the partnership will not only spur demand for Sats’ products in Asia, it will also support Mitsui’s goal of “providing and scaling value-added services to their customers”.

Mitsui managing officer and chief operating officer of retail business, Mr Naoharu Asaumi, added: “Mitsui and Sats aim to provide food solutions to a growing market and contribute to enriching the quality of life for the communities in Asia. (Combining both companies’ expertise), we can scale this ambition.”

Sats shares closed down 0.6 per cent at $3.24 on July 19. THE BUSINESS TIMES

 

[Shion]

Sats back in the black in Q1 on growth in air cargo volume and inflight meal demand​

https://www.straitstimes.com/busine...-in-air-cargo-volume-and-inflight-meal-demand

SINGAPORE - Sats on Aug 20 posted a net profit of $65 million for the first quarter ended June 30, 2024, from a loss of $29.9 million over the same period a year earlier.

This came as revenue for the period rose to $1.4 billion, up 15.5 per cent from the $1.2 billion it posted a year earlier.

In its Q1 business update, the company attributed this to the growth in revenue from both its gateway services and food solutions businesses.

Revenue for its gateway services segment grew 12 per cent year-on-year to $1.1 billion on an increase in air cargo volume from high-tech shipments, growth in e-commerce demand and the shift from ocean freight due to the crisis in the Red Sea.

Meanwhile, its food solutions segment’s revenue grew 29.3 per cent to $310.8 million as inflight meal demand rose.

As revenue scaled up, the company also realised operational efficiencies,, which led operating profit margin to improve from 0.7 per cent to 8.2 per cent. Operating profit for the quarter stood at $112.9 million.

In the coming quarters, Sats expects to maintain its positive momentum.

“The acceleration of e-commerce, the shift to air cargo because of seaport congestion and disruption in maritime shipping are expected to continue to underpin demand for air cargo services,” the company said.

Sats shares rose 3.5 per cent or $0.11 to close at $3.22 before the business update was released. THE BUSINESS TIMES

 

[IntelBen]

SATS stock up 11%...

 

[addict951]

SATS stock up 11%...

$4 otw riao!

 

[Shion]

Sats’ subsidiary proposes to acquire cargo handler in Amsterdam airport​

https://www.straitstimes.com/busine...to-acquire-cargo-handler-in-amsterdam-airport

SINGAPORE - Worldwide Flight Services (WSF) Holland, an air cargo handler at the Netherlands’ main international airport, is proposing to acquire Menzies World Cargo (Amsterdam), which is the general cargo handler at that same airport.

Menzies World Cargo (Amsterdam) is currently the cargo handling arm of Menzies Aviation.

The proposed acquisition will increase the warehouse capacity and the cargo handling capabilities for WFS Holland in one of Europe’s busiest air cargo locations, according to a press statement from ground handler and in-flight caterer Sats, which is the parent company of the air cargo handler.

The additional warehouse will provide more capacity for WFS Holland, which will enable it to capitalise on its strong local customer relations and service levels, and position itself for growth over the long term, said Sats in the statement on Aug 30.

WFS Holland, which has been operating in Amsterdam’s Schiphol Airport since 2000, is now operating close to its maximum capacity, said Mr John Batten, who is the company’s chief executive officer for Europe, Middle East, Africa, and Asia.

“Worldwide Flight Services Holland operates in Europe’s five largest airports by cargo volume and we are excited to see Worldwide Flight Services Holland enlarge its footprint at a time of strong demand for its services,” Mr Batten added.

He said that the business pipeline will soon fill the newly acquired capacity and take the air cargo handler to the next stage of its growth.

WFS and Menzies Aviation have entered into a signing protocol and the proposed deal is pending a few conditions to be fulfilled before it is completed.

Some of these include having the works council – a body that represents employees at the companies – provide advice on the proposed acquisition, and Menzies Aviation delivering the lease agreement of its warehouses to WFS.

The proposed deal involves Sats acquiring a loss-making asset.

Under the terms of the sales and purchase agreement, WFS shall acquire the sale shares for a nominal sum of €1 (S$1.46), which would be paid fully in cash.

The transaction price was arrived at on a negotiated arm’s-length basis and determined after taking into account the pre-completion undertakings.

These include a cash contribution of about €6.25 million paid by Menzies Aviation to Menzies World Cargo Amsterdam.

Shares of Sats were down 0.3 per cent or $0.01 and closed at $3.65 on Aug 30. THE BUSINESS TIMES

 

[addict951]

$4 otw riao!

$4 riao! Up 28c / 7% today and still chionging!
Any news ar???

 

[hwarzoner]

huat ahhhhh

 

[o0KelviN0o]

Shhhhhhhhhh 🫢

 

[pytha6ora$]

Lady Gaga gonna boost Sats.

 

[reddevil0728]

Lady Gaga gonna boost Sats.

can elaborate why?