SG Morning Highlights | First Resources net profit rises 53.4% in H2 to US$197.2 million; proposes S$0.12 dividends

Advancers / Decliners is 78 to 65, with 289.26 million securities worth S$145.40 million changing hands.

Companies around the world paid their shareholders US$1.56 trillion in dividends last year, according to a study published on Wednesday.

The total is up 8.4 per cent from 2021, the previous record year, after rebounding from the Covid-19 pandemic, according to a report by asset manager Janus Henderson.

Oil and gas producers and financial firms accounted for half of that growth, according to its Global Dividend Index, which tracks the 1,200 biggest firms by market capitalisation.

Singapore's "modern services" will get a boost under the new Services 2030 strategy that aims to create over 100,000 jobs, following similar visions outlined last year for manufacturing and trade.

The aim is for the modern services cluster's value-add to grow at least 50 per cent by the end of the decade, said Trade and Industry Minister Gan Kim Yong at his ministry's Committee of Supply debate on Tuesday (Feb 28). The cluster includes professional services, financial services, and infocomm technology and media.

Part of the strategy is the newly-launched Professional Services Industry Transformation Map 2025, which Gan said will "play an important role in strengthening Singapore's position as a leading hub". This "diverse group" includes company headquarters and firms that provide consulting, legal and accounting services.

The Ministry of Communications and Information (MCI) is developing a road map for Singapore's long-term ambitions for its connectivity infrastructure.

The road map will span plans for broadband, mobile and WiFi networks that provide domestic connectivity, and subsea cables that provide international connectivity.

Slated to be launched later this year, the Digital Connectivity Blueprint will also find ways of complementing other aspects, such as data centres and digital utilities.

Hotels' average room rate (ARR) in the Republic eased in January to the lowest since August 2022, but remained far above January 2022’s levels, Singapore Tourism Board data showed on Tuesday (Feb 28). All other measures also fell on the month, but rose on the year.

ARR in January 2023 was up 53 per cent from the same period a year earlier to S$273.94, even as it dipped 4.3 per cent from December's 14-year high of S$286.21.

ARR was S$248.91 in August 2022, before picking up to remain above S$280 from September to the end of the year.

Singapore is extending several investment promotion tax incentives for five more years, even as it prepares to implement global tax rule changes.

But separately, individuals will need to invest more to become permanent residents (PRs) under the Global Investor Programme (GIP).

The Pioneer Certificate, Development and Expansion Incentive, and Investment Allowance tax incentives will all be extended till Dec 31, 2028, said Minister for Trade and Industry Gan Kim Yong during the ministry's Committee of Supply debate on Tuesday (Feb 28).

Net profit for the full year more than doubled, reaching US$325.2 million in FY2022 from US$161.1 million in FY2021.

Revenue was also 11.4 per cent higher, at US$690.2 million in H2 2022, from US$619.4 million previously. This brings its full year revenue to US$1.2 billion, which is 18.7 per cent higher than the US$1 billion reported in FY2021.

Net profit for the three months ended Dec 31, 2022 fell to RM191.3 million (S$57.9 million) from RM453.6 million in the year-ago period. On a per-share basis, earnings in Q4 FY22 fell to RM0.0217 from RM0.049 in Q4 FY21.

A first and final dividend of RM0.07 per share was declared, which will be payable to shareholders on Apr 28. The dividend was 17 per cent higher than the RM0.06 dividend in FY21.

The recently spun-off financial unit of Yangzijiang Shipbuilding on Wednesday (Mar 1) posted a loss after allowances of S$17.1 million, as opposed to profit after allowances of S$111.9 million in H2 FY2021. This came as a S$135.9 million allowance for credit losses was recorded during the period under review, due to additional allowances made for non-performing debt investments and microfinance loans.

Total income for the half year declined 9 per cent year on year to S$132.4 million from S$145.7 million, mainly due to lower interest income and dividend income.

Revenue for the second half of the year was up 18 per cent to US$11.1 billion, due primarily to higher sales in Astra's automotive segment, financial services, heavy equipment and mining operations and higher sales in direct motor interests.

The board of directors has recommended a final dividend of US$0.83 per share, up from US$0.62 per share in 2021.