TRANSPORT operator SBS Transit posted a 2.7 per cent rise in net profit to S$34.3 million for its fiscal second half ended Dec 31, 2023, as the operating profit from running public transport services grew 10.3 per cent, or S$2.1 million, to S$21.9 million, the group announced on Tuesday (Feb 27).
The group attributed the jump in operating profit to lower premises costs, lower repairs and maintenance costs and lower staff costs. They offset higher fuel and electricity costs, higher other operating costs and a drop in public transport revenue, it pointed out.
H2 revenue from public transport services was S$752.9 million, down 0.2 per cent or S$1.6 million, despite a lift in rail revenue as ridership grew. The drop in revenue was due to lower fuel indexation for bus service fees, the company said.
The group’s overall H2 revenue thus fell marginally, by about S$161,000, to S$782.8 million, bringing the full-year revenue to S$1.5 billion, which is 0.8 per cent more than FY22’s takings.
Net profit for the full year came in at S$69.1 million, an increase of 1.5 per cent or S$1.1 million from the previous year.
The full-year results translate to earnings per share of 22.15 Singapore cents, against earnings per share of 21.81 Singapore cents in FY22.
SBS Transit Group chief executive officer Jeffrey Sim said the group has witnessed a steady recovery of ridership as Singapore returned to pre-pandemic normalcy.
The company expects rail fare revenue to grow with higher ridership and fare increase effective from Dec 23, 2023.
That said, bus operations revenue is likely to drop with the expiry of Jurong West bus package as it will be handed over to a new operator from Sep 1, the group said.
“Operating costs remain a challenge due to cost uncertainties arising from inflation, tight labour market and elevated electricity prices,” it added.
The board has proposed a final tax-exempt one-tier dividend of 5.58 Singapore cents per share.
Together with the interim tax-exempt one-tier dividend of 5.58 Singapore cents paid earlier, the total dividend for 2023 will be 11.16 Singapore cents per share or a payout ratio of 50 per cent, if the final dividend is approved by shareholders at the upcoming Apr 25 annual general meeting.
SBS Transit shares closed up 0.8 per cent to S$2.69 on Tuesday, before the results’ release.
