For the year ended Dec 31, the group posted a revenue of $3.02 billion, up 8 per cent - and breaching the $3 billion mark for the first time. From that, it raked in an operating profit of $334.8 million, 9.6 per cent more than the year before.

Net earnings, however, dipped by 8.8 per cent to $223 million because of an exceptional gain it had in 2006. If not for that, net profit - driven by better performance in every business except diesel sale to cabbies in Singapore - would have risen by 10.1 per cent.

ComfortDelGro chief executive Kua Hong Pak warned, however, that this year might be tougher.

'The global economic outlook remains very uncertain,' he said. 'Inflationary pressures, in general, will leave us less leeway to contain costs.'

ComfortDelGro's overseas businesses contributed 47 per cent to group turnover from 45 per cent previously, with Australia posting the most remarkable growth. The share of operating profit from abroad grew from 42 per cent to 46 per cent.

Of all its expenses, staff cost again emerged as the single-biggest item. Last year, salaries and bonuses rose by 10.2 per cent to $950.7 million, mainly because of pay increments and additional routes secured. The group added another 730 people to its headcount of about 22,000.

Mr Kua said ComfortDelGro would strive for better efficiency to mitigate the rising cost of labour.

In comparison, energy and fuel costs were modest, even though these rose by 10.7 per cent to $216.9 million. Interestingly, the increase in diesel price accounted for only $1 million of the fatter bill, as the group had hedged successfully against such a rise. Instead, the bigger expenditure was on the back of growth in services.

It incurred higher insurance costs, which Mr Kua said was mainly on the back of higher premiums in China.

The group paid $66.6 million in benefits to cabbies, down from $80.6 million previously.

It enjoyed an $80.8 million net increase in cash flow. Cash and equivalents at the end of the year stood at $318.4 million from $237.6 million at the beginning of the year.

Directors are recommending a final dividend of 2.65 cents a share, from the previous payout of three cents, plus a special dividend of 1.5 cents.

christan@sph.com.sg

SBS Transit cuts payouts

It has declared a final dividend of 3.25 cents, down from 6.5 cents for 2006.

Shareholders also had a 17-cent special dividend previously because of Section 44 tax credits, which have been expended.

ComfortDelGro group chief executive Kua Hong Pak said: 'We need to set aside a lot more to meet new quality of service standards.'

SBS Transit will have to buy at least another 100 buses to do this. It has started hiring drivers from China, as it is having difficulty recruiting drivers from Malaysia.

Its net profit for last year shrank by 10.9 per cent to $50 million on higher maintenance and depreciation costs.