Here is another edition of stock highlights where we provide updates on the latest corporate news and events.
Singapore Airlines Limited (SGX: C6L)
Singapore Airlines Limited, or SIA, has signed a letter of intent to purchase seven A350F freighter aircraft from Airbus (EPS: AIR), with an option to buy another five more.
Once delivered in the fourth quarter of 2025 (4Q2025), SIA will become the first airline to operate this new-generation wide-body freighter aircraft.
The letter of intent signed with the reputable aircraft manufacturer includes a swap of aircraft, where SIA will hand over 15 A320neo and two A350-900 passenger aircraft to Airbus.
By doing so, the airline can keep its capital expenditure low while still achieving its objective of renewing its fleet.
The new A350Fs can carry a similar volume of cargo as the Boeing 747-400Fs that it is replacing, but burns 40% less fuel, thus allowing the airline to save on fuel costs.
These new aircraft also possess a longer range, thus allowing SIA more operational flexibility in deploying them.
This deal will not only materially lower SIA’s carbon footprint, advancing it one step close to its net-zero carbon emissions goal by 2050, but also ensure its future fleet will remain one of the youngest in the industry.
Sembcorp Industries Limited (SGX: U96)
Sembcorp Industries Limited, or SCI, plans to build Europe’s largest battery energy storage system to help the UK to achieve its net-zero emissions target.
SCI’s UK subsidiary, Sembcorp Energy UK or SEUK, will construct a 360 megawatt (MW) battery at Wilton International at Teesside.
By doing so, SEUK can help to ensure the resilience of the UK’s electrical network and also advance the group’s renewables goal.
SEUK has the available land and connections ready to install the batteries, which will be done in tranches.
Sembcorp’s unit currently operates 70 MW of batteries and is poised to add another 50 MW by early 2022.
Once these developments pan out, SEUK’s total energy portfolio should total over 1,600 MW, with around 500 MW being supplied by batteries.
ComfortDelGro Corporation Limited (SGX: C52)
ComfortDelGro Corporation Limited, or CDG, has just announced a S$15.8 million deal with Stagecoach Group plc which will make it the second-largest intercity coach operator in the UK.
As part of two agreements, CDG will acquire the remaining 35% stake in Scottish Citylink, which operates 19 long-distance express services within Scotland.
By acquiring this stake, Scottish Citylink will become a fully-owned subsidiary of CDG.
At the same time, the land transport giant will also acquire the marketing, retail, and customer service arms of Stagecoach’s Megabus UK coach business and the Falcon coach service.
Megabus is a network of long-distance coach services linking 90 locations in England and Wales.
Falcon service is the only public transport link that connects the towns of Plymouth, Exeter, Cullompton, Wellington, and Taunton with Bristol Airport and city centre.
The entire deal is expected to close by the end of February next year and CDG will operate 150 inter-city coaches by then, up from its current 100.
By then, it will become the second-largest coach operator with a market share of around 11%.
Q&M Dental Group (Singapore) Limited (SGX: QC7)
Q&M Dental, which owns the largest network of 90 private dental clinics in Singapore, announced that its 51%-owned subsidiary, Acumen Diagnostics, has been granted a license by the Ministry of Health (MOH) to provide offsite COVID-19 polymerase chain reaction (PCR) swab services and serology sample collections.
With the new Omicron variant circulating the world and the new vaccinated travel lanes scheme in place, the group intends to ramp up its testing services as it anticipates more demand for testing.
The PCR tests will start their rollout at 10 Q&M dental outlets plus the group’s headquarters by 31 December 2021.
More sites will progressively be added with a potential capacity to activate 100 sites island-wide.
Acumen Diagnostics can also provide doorstep PCR tests for an additional fee if needed.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.