[SINGAPORE] Singapore Post’s (SingPost) net profit for the second half ended Mar 31 surged 232.7 per cent to S$222.5 million, from S$66.9 million in the corresponding year-ago period, the group said on Thursday (May 15).
This comes after the national postal service provider recorded an exceptional gain from the divestment of its Australia business. The gain of S$222.2 million comprises largely of a gain on disposal of SingPost Australia Investments of S$302.1 million, as well as fair value gains on properties of S$15.2 million.
However, this was partially offset by impairment charges of S$79.6 million, primarily for Quantium Solutions. On Apr 16, SingPost and Alibaba agreed to unwind their respective minority cross-shareholdings on Quantium Solutions. The logistics company was majority-owned by SingPost, and SingPost paid Alibaba S$36.89 million for its stake.
SingPost proposed a special dividend of S$0.09 per share, following the divestment of SingPost Australia Investments. The date payable and record date will be announced later.
Excluding the net exceptional gain, SingPost’s underlying net loss for H2 stood at S$461,000, versus a net profit of S$28.1 million in the year-ago period.
Meanwhile, revenue was down 12.1 per cent at S$387.5 million for the half-year period, from S$440.6 million previously.
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Earnings per share (EPS) stood at S$0.0989 including distribution to perpetual securities holders, from S$0.0297. Excluding the distribution, EPS stood at S$0.0965, up from S$0.0273.
For the full year, net profit jumped 212.9 per cent year on year to S$245.1 million from S$78.3 million. Revenue was down 7.5 per cent at S$813.7 million, from S$879.2 million.
By segment
SingPost’s operating profit in H2 for its Singapore postal and logistics segment fell 55.5 per cent year on year to S$7.4 million, from S$16.6 million. The group noted that the post office network remains unprofitable.
However, in terms of property, operating profit for the period was up 17.8 per cent at S$24.5 million from S$20.8 million previously. This was largely due to higher rental income from SingPost Centre.
SingPost’s international business posted a wider operating loss of S$5.3 million, from S$600,000 in the previous year, attributable to challenging business conditions in the cross-border business.
Its freight forwarding business posted an operating profit of S$12 million, up 31 per cent from S$9.2 million, as the group benefited from higher sea freight rates.
SingPost shares closed 1.6 per cent or S$0.01 higher at S$0.635 on Wednesday.
