Advertisement
Singapore markets close in 6 hours 13 minutes
  • Straits Times Index

    3,174.70
    +2.77 (+0.09%)
     
  • Nikkei

    39,555.73
    -184.71 (-0.46%)
     
  • Hang Seng

    16,647.88
    -89.24 (-0.53%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Bitcoin USD

    66,193.28
    -1,377.85 (-2.04%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,149.42
    +32.33 (+0.63%)
     
  • Dow

    38,790.43
    +75.66 (+0.20%)
     
  • Nasdaq

    16,103.45
    +130.27 (+0.82%)
     
  • Gold

    2,165.30
    +1.00 (+0.05%)
     
  • Crude Oil

    82.69
    -0.03 (-0.04%)
     
  • 10-Yr Bond

    4.3400
    +0.0360 (+0.84%)
     
  • FTSE Bursa Malaysia

    1,547.89
    -5.75 (-0.37%)
     
  • Jakarta Composite Index

    7,357.61
    +55.16 (+0.76%)
     
  • PSE Index

    6,878.05
    +24.76 (+0.36%)
     

SingPost’s net profit inches up 0.6% to $43.5m

On back of its eCommerce transformation.

Singapore Post (SingPost) closed 3QFY16 with $43.5m in net profit, reflecting a 0.6% YoY rise on back the SingPost’s transition into a global eCommerce logistics firm.

According to OCBC, SingPost has gone into net debt position of $176m in 3QFY16, compared to being net cash in the preceding quarter, as the company funded the acquisition of TradeGlobal. With this, SingPost has finished all strategic acquisitions, and is currently not doing due diligence on any more companies.

Going forward, the focus will be on integrating the various businesses. Meanwhile, OCBC estimates that SingPost has committed capital expenditure of around $250m to be incurred by mid-2017.

ADVERTISEMENT

Meanwhile, the news of Dr. Baier’s resignation and the questions regarding the company’s corporate governance have badly hurt SingPost’s stock price. However, SingPost remains the dominant postal operator and will likely keep churning out stable cash flows.

Currently, the market awaits for the results of the Special Audit, which will be undertaken by PwC. OCBC believes it is probable that a new CEO would only joining SingPost after there is more clarity from the Special Audit.



More From Singapore Business Review