This reflects the company&rsquo s strategic decision to continue investing in Singapore

 

GATEWAY services and in-flight catering solutions provider Sats has restructured its gateway services business to form two new business units, Singapore Hub and Gateway Services Asia-Pacific.

 

On Wednesday (Jul 10), the group said this move reflects its strategic decision to continue investing in Singapore, while scaling its international presence to capture growth opportunities overseas.

 

Each unit will target growth in &ldquo distinct and important market segments&rdquo , it added.

 

Singapore Hub will focus on driving aviation hub competitiveness in Singapore. Sats said that focusing on Singapore as a standalone market would strengthen the group&rsquo s ability to support current and future needs for Singapore&rsquo s air hub, which groups Changi Airport, Seletar Airport and the aviation industries at these gateways.

 

Sats president and chief executive officer, Kerry Mok, said this new unit represents the group&rsquo s &ldquo commitment to ensure the continued success of Singapore&rsquo s aviation sector and Changi Airport by providing Singapore&rsquo s airports with safe and efficient operations around the clock&rdquo .

 

The other new business unit, Gateway Services Asia-Pacific, will concentrate on growing Sats&rsquo Asia-Pacific market share and manage the group&rsquo s operations in overseas airports, including its network of overseas stations through its subsidiaries, joint ventures and associates.

 

Sats chief operating officer Henry Low will chief executive of Singapore Hub, and Bob Chi, currently chief executive of the gateway services division, will be re-designated chief executive of Gateway Services Asia-Pacific.

 

Both appointments take effect on Oct 1.

 

Mok said: &ldquo I am confident Bob has the experience, drive and network that will place Gateway Services Asia-Pacific on a strong footing to create long-term value for Sats through increased market share in the international arena.&rdquo

 

DBS analyst Jason Sum said the restructuring of Sats&rsquo gateway services business is &ldquo not considered material&rdquo , though he sees the move as consistent with the group&rsquo s strategy of expanding its geographical presence in cargo handling.

 

He said in an email to The Business Times: &ldquo Having two separate business units enables Sats to present itself as more locally focused and client-centric in both domestic and international arenas. This structure can significantly enhance its competitiveness and ability to secure commercial wins in these distinct markets.&rdquo

 

In his view, having separate units enables Singapore Hub to &ldquo focus entirely on maintaining and enhancing operations within Singapore, tailoring its services to meet local demands and regulatory requirements&rdquo .

 

&ldquo Meanwhile, Gateway Services Asia-Pacific will concentrate on understanding and meeting the diverse needs of international markets in the Asia-Pacific. This specialisation can lead to increased adaptability and more effective, customised solutions that are attractive to clients,&rdquo he added.

The second highest-paid executive is the CEO for Americas at Worldwide Flight Services

 

INFLIGHT caterer and ground handler Sats : S58 +0.68% rewarded its chief executive officer Kerry Mok with a remuneration of S$2.4 million for FY2024, a year when the Singapore-based group reported its first annual profit after being hit by the pandemic and its acquired cargo handler started contributing to its financials.

 

The remuneration &ndash made up of about S$920,000 in salary, S$900,000 in bonuses, S$540,000 in vested shares, and S$74,000 in benefits &ndash was a 27.9 per cent jump over FY2023&rsquo s S$1.9 million.

 

Specifically, Mok&rsquo s salary was only 4.9 per cent higher, but his bonuses shrank 5.5 per cent, based on the Sats annual report published on Thursday (Jul 4). There were no vested shares for FY2023 for the 53-year-old.

 

The second highest-paid executive in FY2024 was the CEO for Americas at Worldwide Flight Services (WFS), which Sats brought into the fold in April 2023 at an enterprise value of 2.3 billion euros (S$3.4 billion).

 

Michael Simpson drew a remuneration of S$2 million to S$2.25 million. The previous second highest-paid executive was Sats&rsquo chief financial officer, Manfred Seah, who had a remuneration of S$1.25 million to S$1.5 million in FY2024, compared with S$1 million to S$1.25 million for FY2023.

 

The acquisition of WFS has made Sats more diversified geographically. Singapore accounted for 34 per cent of the revenue in FY2024, down from 85 per cent in FY2022, and the Americas now contribute to 36 per cent of its turnover.

 

Sats recorded the highest ever top line of S$5.1 billion (up from S$1.8 billion) and earnings of S$56.4 million for FY2024 to March, against a net loss of S$26.5 million in the year-ago period.

 

The group is now aiming to bring in over S$8 billion in revenue by FY2028, and also attain a return on equity of 15 per cent, and achieve a market capitalisation of S$10 billion after FY2028. To hit these marks, Sats will focus on repaying its loans, reinvesting into capital expenditure and resuming dividends to its shareholders.

 

A final dividend of S$0.015 per share was proposed for the full year, compared with no dividend for the prior three years. When approved by shareholders at the Jul 19 annual general meeting, the dividend will be paid out on Aug 8.

 

Sats&rsquo greenhouse gas (GHG) emissions amounted to 1.2 million tonnes of carbon dioxide equivalent in FY2024, its sustainability report published on Thursday disclosed, up 5 per cent.

 

Of which, direct and energy indirect GHS emissions &ndash what are known respectively as Scope 1 and 2 emissions &ndash totalled 329,900 tonnes, surging 58 per cent year on year. Sats said the integration of WFS contributed to about 60 per cent of the increase.

 

Other GHG emitted indirectly, as defined under Scope 3, accounted for the bulk of the total emissions, at 71.6 per cent.