TRANSPORT & LOGISTICS | Staff Reporter, Singapore

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.

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. 

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