Company&rsquo s shares hit highest price in more than 5 years as telco returned to the black with S$2.8 billion H2 net profit

 

[SINGAPORE] Shares of Singtel : Z74 +2.6% rose on Thursday (May 22) morning after the telco giant announced a final dividend of S$0.10 per share and initiated its first share buyback programme of up to S$2 billion.

 

As at 11.21 am, the counter climbed to S$3.99, 3.6 per cent or S$0.14 higher than its Wednesday closing price of S$3.85, with 30.1 million shares changing hands, ShareInvestor data showed. This is the highest price Singtel shares have risen to in more than five years &ndash the last time it reached such levels was in 2017.

 

By 1.24 pm, the counter had eased back down to S$3.96, still up by 2.9 per cent or S$0.11, with 35.3 million shares transacted.

 

On Thursday, Singtel returned to the black with S$2.8 billion net profit for its second half ended March and proposed a final dividend of S$0.10 per share.

 

It also disclosed plans to repurchase as much as S$2 billion worth of shares in the open market as part of its capital management strategy, under its maiden share buyback programme that will be executed over the course of three years until FY2028.

 

Repurchased shares will be cancelled, and funding for the programme will be underpinned by excess capital from Singtel&rsquo s asset-recycling proceeds.

 

Under its Singtel28 growth plan, the company is raising to S$9 billion its mid-term asset-recycling target that it set at S$6 billion in May 2024.