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Several Singaporean companies have reported impressive earnings and increased their dividends this earnings season. Despite the backdrop of high inflation and rising interest rates, these firms have managed to not only post better-than-expected revenue and profit figures but also share the benefits with their shareholders.
StarHub Ltd (SGX: CC3), a major player in Singapore’s telecommunications sector, has demonstrated a solid financial performance for the first half of 2024. The company’s revenue, excluding the recently divested D ‘Crypt, saw a modest increase of 1% year-on-year, reaching S$1.1 billion. Net profit also rose by 8.7%, amounting to S$83.3 million. In line with its strong performance, StarHub has declared an interim dividend of S$0.03 per share, up from S$0.025 the previous year. The company remains committed to its DARE+ strategic initiatives and has reaffirmed its dividend guidance of at least S$0.06 for the full year 2024.
ComfortDelGro Corporation Ltd (SGX: C52), a global transport operator with a diverse portfolio including buses, taxis, and rail services, reported a robust financial performance for the first half of 2024. The company achieved a 13.7% increase in revenue, which reached S$2.1 billion. Operating profit saw a significant improvement of 19.9% year-on-year, totaling S$140.5 million, and net profit surged by 21.4% to S$95.3 million. This marked the fifth consecutive quarter of year-on-year net profit growth for ComfortDelGro.
The company declared an interim dividend of S$0.0352 per share, reflecting a 21.4% increase from the previous year. Despite anticipated declines in bus revenue starting September, ComfortDelGro expects stability in rail revenue and improved margins from its international operations, including the London public bus contract renewals and new franchises in Greater Manchester.
Genting Singapore (SGX: G13), known for its flagship integrated resort Resorts World Sentosa, has also delivered strong results. The company reported a 25% increase in revenue, reaching S$1.36 billion, and a 29% rise in net profit, totaling S$356.9 million for the first half of 2024. In response to its robust earnings, Genting Singapore has increased its interim dividend by 33% to S$0.02 per share.
Centurion Corporation Ltd (SGX: OU8), which specializes in purpose-built accommodation assets, reported a remarkable financial performance with revenue climbing 27% year-on-year to S$124.4 million. Net profit more than tripled to S$118.2 million, though this included fair value gains of S$61.6 million. Excluding these gains, Centurion’s core net profit rose by 48% to S$48.5 million. The company declared an interim dividend of S$0.015, a substantial 50% increase from the previous year. Centurion is actively expanding its accommodation portfolio with new developments in Singapore and Malaysia, including a new 1,650-bed facility and additional bed enhancements by the end of 2024.
These companies’ ability to enhance dividends while navigating a challenging economic environment highlights their robust financial health and commitment to delivering value to shareholders.