To The Moon

In the first seven months of 2026, Singapore-listed companies significantly increased their spending on share buybacks compared to the same period in the previous two years.

Over 70 primary-listed firms repurchased a total of S$1.9 billion in shares. This figure is up from roughly S$1.3 billion in the first seven months of 2025 and S$772 million during the comparable period in 2024.

Four prominent blue-chip companies contributed approximately two-thirds of this total buyback value.

Singapore Telecommunications, or Singtel, Keppel Ltd, Singapore Technologies Engineering, or ST Engineering, and Seatrium collectively repurchased S$1.25 billion worth of shares.

These four companies also share a significant common investor.

As of 31 March 2026, Temasek held a 52% stake in Singtel, 51% in ST Engineering, 36% in Seatrium, and 21% in Keppel.

What is Singtel Using to Fund Its Buyback?

Singtel led the buyback charts for both the month of July and the entire first seven months of 2026.

The company repurchased 195.3 million shares for S$893.0 million, an amount nearly half of the total national buyback figure.

For the fiscal year ending 31 March 2026, the group's revenue held steady year-on-year (YoY) at S$14.3 billion.

A 2% depreciation in the Australian dollar masked what was otherwise underlying growth.

Operating profit saw an 8.9% YoY increase to S$1.5 billion, while underlying net profit rose by 12% to S$2.8 billion.

NCS lifted its operating profit by 34% to S$340 million, and Optus added a 23% increase to A$550 million.

Singtel's Singapore operations, however, moved in the opposite direction.

Operating profit in Singapore fell 4.6% YoY to S$795 million, pressured by mobile competition and roaming challenges from travel eSIMs.

Management declared a total dividend of S$0.185 per share, a 9% YoY increase. This comprises a core dividend of S$0.134 and a value realisation dividend of S$0.051.

The group also sold a 0.8% stake in Airtel for S$1.5 billion during the year.

Shares purchased under the S$2 billion Value Realisation Share Buyback programme are subsequently cancelled.

This process increases the ownership interest of each remaining shareholder.

Can ST Engineering’s Cash Flow Support Both Dividends and Buybacks?

ST Engineering repurchased 7.8 million shares for S$81 million over the same seven-month period.

The group announced its first-half results on 13 August 2026.

Revenue grew by 11.1% YoY to S$6.6 billion.

Operating profit climbed 24.6% to S$701.5 million, and net profit attributable to shareholders rose 27.1% to S$512.1 million.

Earnings grew at a faster rate than revenue across all three of the company's segments.

Commercial Aerospace led the way with 15% revenue growth, driven by higher sales in engine MRO, nacelles, and spares.

Urban Solutions & Satcom matched that growth rate, with deliveries in rail and tolling boosting its operating profit fourfold.

The Defence & Public Security segment added 7% growth.

Net finance costs decreased by 14.9%.

Free cash flow reached S$591.6 million, compared to S$484.6 million in the same period last year.

Ordinary dividends declared for the half amounted to roughly S$281 million (S$0.09 per share), and the share buyback cost S$81 million.

Both are fully covered by the cash flow.

The company's order book reached a record S$35.7 billion as of 30 June 2026, with S$5.7 billion due for delivery over the remainder of 2026.

Approximately S$1.7 billion of that record total reflects an E-ZPass contract that entered the order book this quarter, more than a year after work on it actually began.

Why is Keppel’s Cash Flow Moving in a Different Direction?

Keppel repurchased 21.6 million shares for S$246.7 million, making it the second-largest buyer after Singtel.

First-half revenue increased by 24.6% YoY to S$3.8 billion.

The Infrastructure division led this gain, as the Keppel Sakra Cogen Plant commenced commercial operations.

Net profit attributable to shareholders fell 59.0% to S$154.7 million, following a S$375 million loss in the non-core portfolio.

Excluding that portfolio, net profit rose by 25% to S$530 million.

Cash generation, however, presented a different picture.

Operating cash flow dropped to S$96.8 million from S$219.4 million a year ago, due to higher working capital requirements.

Keppel reported a free cash inflow of S$570 million, though this metric includes investing activities.

Divestment proceeds and dividends received, totalling S$1.1 billion, supplied the majority of this inflow.

The interim dividend was maintained at S$0.150 per share, payable on 21 August 2026.

Free cash flow is essential for dividends, and a share buyback draws from the same cash pool.

The next set of financial results will reveal whether operating cash flow can recover before the proceeds from divestments begin to diminish.

What is Seatrium Returning to Shareholders, and What is the Source?

Seatrium repurchased 14.1 million shares for S$31.7 million, the smallest amount among the four companies.

First-half revenue rose 4.7% YoY to S$5.6 billion.

Revenue from ship and rig building or conversion climbed 17.5% to S$4.2 billion.

This growth more than offset a 29% decline in the offshore platforms segment.

Profit attributable to owners surged 158.3% YoY to S$372.9 million.

Other operating income included a S$171.7 million gain from the disposal of non-core assets.

Free cash flow remained negative at S$11.6 million, an improvement from negative S$31.9 million a year ago.

A S$1.6 billion build-up in contract assets accounted for most of the cash drag.

This occurred because revenue was recognised ahead of billings.

Seatrium declared no interim dividend, unchanged from the previous year.

The company pays dividends annually.

Management guided that net profit for the full fiscal year 2026 will be materially higher than in FY2025.

One-off gains from divestments account for part of this expected increase.