Singapore Telecommunications (Singtel) on Wednesday presented a positive annual earnings forecast and reported a nearly threefold increase in third-quarter earnings, propelled by an exceptional gain. This surge led its shares to near six-year highs.
Singtel's shares rose 1.2% to S$3.4 and were poised for a strong trading session, nearing their peak of S$3.475 in July 2019.
The company's net profit surged to S$1.3 billion ($968.85 million) for the quarter ending December 31, up from S$465 million the previous year.
Singtel's exceptional gain included proceeds from selling partial stakes in Thailand associate Intouch and Indara, previously Australia Tower Network, along with gains from its stake in India's Bharti Airtel. This turnaround followed a net exceptional loss of S$94 million a year earlier.
Airtel's earnings were boosted by various factors, including fair value gains from the consolidation of Indus Towers and foreign exchange gains.
Singtel now expects its earnings before interest and taxes to show robust growth, projecting an increase in the high teens to low twenties percentage range for the 2025 financial year, a more optimistic outlook than the earlier forecast.
The company anticipates paying a total ordinary dividend of around 16.5 Singapore cents per share for the year, up from 15 Singapore cents the previous year.
Market analysts at Citi foresee a positive market response to Singtel's performance and have raised their price target on the stock, maintaining a 'buy' rating with expectations of further growth and capital management initiatives.
($1 = 1.3418 Singapore dollars)