SBS Transit's Q3 profit rises 43.2% to S$7.8m

Singapore - SBS Transit's net profit for the third quarter ended Sept 30 jumped 43.2 per cent to S$7.8 million, mainly on its bus segment's lower fuel costs and lower depreciation, although this was offset by lower bus revenue and higher staff costs.

Third-quarter revenue rose 4.8 per cent to S$274.7 million from the same period a year ago.

Earnings per share climbed to 2.52 Singapore cents, up from 1.77 Singapore cents.

No dividend has been proposed.

SBS Transit is the unit of land transport giant ComfortDelGro and Singapore's biggest bus operator. It also runs a smaller rail network.

Q3 revenue from the bus segment dipped 0.8 per cent to S$205.6 million, with operating profit rising 35.1 per cent to S$9.2 million due mainly to lower fuel costs, lower depreciation and lower other operating costs, offset by lower revenue, higher staff costs and higher repair and maintenance costs.

The rail segment's Q3 revenue rose 26.3 per cent to S$69.1 million, due mainly to the increase in average daily ridership following the commencement of revenue service of Downtown Line 2, offset by lower average fare for North-East Line and Light Rail Transit due to the fare reduction from Dec 27, 2015.

Operating profit fell 21.2 per cent to S$0.8 million due mainly to higher staff costs from the build-up of staff for DTL 3, higher premises costs, higher repairs and maintenance costs, higher electricity costs and higher other operating costs, offset by higher revenue.

For the first nine months, net profit rose 41.9 per cent to S$23.15 million, as revenue increased 5.6 per cent to S$807.26 million.

Year-to-date earnings per share were 7.48 Singapore cents, up from 5.28 Singapore cents previously.

SBS Transit shares closed six cents higher at S$2.21 on Thursday.

This article was first published on November 11, 2016.
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