SMRT powers ahead with 10% increase in interim earnings
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DOMINANT rail operator SMRT posted a 10 per cent rise in net earnings to $59 million for the first half ended Sept 30, powered by higher ridership and better rental income.
Revenue rose by 2.7 per cent to $367.8 million. Besides improved ridership, interim turnover was boosted more meaningfully by the fare increase in July last year.
Profit was enhanced by a spike in interest and investment incomes on the back of an improved equity market as well as SMRT's enlarged cash horde.
Cash and equivalents at the end of the first half stood at $143.1 million, from $66.2 million previously.
Earnings per share for the interim period rose to 3.9 cents from 3.6 cents. Net asset value per share and net tangible asset per share stood at 38.4 cents and 35.6 cents respectively - from 38.8 cents and 36.1 cents previously.
Costs for the first six months rose slightly, with higher salary and energy costs offset partially by lower depreciation - partly because of a smaller taxi fleet.
There are signs of a respite in energy expenses, which have been northward bound for several quarters now. Indeed, lower diesel cost was cited as one reason for bus operations returning to profitability in the last three months.
On a quarter-to-quarter basis, all of SMRT's operations were in the black in the July to September period, except for LRT. Even its bus and taxi operations returned to profitability from the rare losses posted in the first quarter.
From an operating loss of $500,000, buses earned $2.4 million. And from $3.2 million in losses, taxis made $1.3 million.
A spokesman said the bus operations were boosted by 'lower diesel prices and higher ridership' in the second quarter, while the cab unit had 'reduced bad debts and more taxis hired out''.
But the bus and cab divisions were outdone by the rental of retail space. This business made $5.3 million in the second quarter, and $10.2 million in the six months - far exceeding chief executive Saw Phaik Hwa's target when she first set out to improve rental yield by revamping the retail concept in MRT sites three years ago.
Looking ahead, SMRT expects rail and bus ridership in the third quarter to be higher than in the same period last year. The Oct 1 fare hike will also kick in. But it expects costs to rise on the back of repairs and maintenance and the mid-life upgrade of trains. It also said diesel prices would be volatile.
Directors have recommended a dividend of 1.5 cents per share for the interim, unchanged from previously.
At least one analyst expects the Government's renewed drive to raise public transport ridership to be positive for SMRT.
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fare hike mah
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they selectively missed the point.
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well these are some of the good news out of the the very big bad new from the parent company
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sort of....Originally posted by dragg:they selectively missed the point.
they r careful where they place the emphasis on where the profits come from, clearly they engaged some pr consultants to word the release after previous uproar... -
Lesson learnt: when there's a fare hike, go buy the shares. You're sure to get a dividend.
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I think the best shares to invest in Singapore is all the TIBS, SBS and SMRT. Sure make $$ one.Originally posted by kaister:Lesson learnt: when there's a fare hike, go buy the shares. You're sure to get a dividend.
Their profit not enough, they will request for fare hike. Then everytime approve one. So, you sure make $$ one lor. -
These are only for long terms shares. There is a risk though, 4 yr later there might be a cut in fare then yr dividen drop leh.Originally posted by Hogzilla:I think the best shares to invest in Singapore is all the TIBS, SBS and SMRT. Sure make $$ one.
Their profit not enough, they will request for fare hike. Then everytime approve one. So, you sure make $$ one lor. -
But SMRT esp the co is practically at zero growth. Cos the only thing they 'expanded' is the retail space... Once the retail space is done, growth would again be limited... Another thing to mention is that SMRT is totally prone to local environmentOriginally posted by NewAge:These are only for long terms shares. There is a risk though, 4 yr later there might be a cut in fare then yr dividen drop leh. -
But you believe there will be fare cut har?Originally posted by NewAge:These are only for long terms shares. There is a risk though, 4 yr later there might be a cut in fare then yr dividen drop leh. -
if lets say... a new management?
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There will never be a fare cut. Since when is the last time you've seen one?
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comfort also posted very good finacial result a few months back...
but it said more than 50% of its profit is from its investment out of SG...
is this the reason why it increased the price?
Originally posted by dragg:DOMINANT rail operator SMRT posted a 10 per cent rise in net earnings to $59 million for the first half ended Sept 30, powered by higher ridership and better rental income.
Revenue rose by 2.7 per cent to $367.8 million. Besides improved ridership, interim turnover was boosted more meaningfully by the fare increase in July last year.
Profit was enhanced by a spike in interest and investment incomes on the back of an improved equity market as well as SMRT's enlarged cash horde.
Cash and equivalents at the end of the first half stood at $143.1 million, from $66.2 million previously.
Earnings per share for the interim period rose to 3.9 cents from 3.6 cents. Net asset value per share and net tangible asset per share stood at 38.4 cents and 35.6 cents respectively - from 38.8 cents and 36.1 cents previously.
Costs for the first six months rose slightly, with higher salary and energy costs offset partially by lower depreciation - partly because of a smaller taxi fleet.
There are signs of a respite in energy expenses, which have been northward bound for several quarters now. Indeed, lower diesel cost was cited as one reason for bus operations returning to profitability in the last three months.
On a quarter-to-quarter basis, all of SMRT's operations were in the black in the July to September period, except for LRT. Even its bus and taxi operations returned to profitability from the rare losses posted in the first quarter.
From an operating loss of $500,000, buses earned $2.4 million. And from $3.2 million in losses, taxis made $1.3 million.
A spokesman said the bus operations were boosted by 'lower diesel prices and higher ridership' in the second quarter, while the cab unit had 'reduced bad debts and more taxis hired out''.
But the bus and cab divisions were outdone by the rental of retail space. This business made $5.3 million in the second quarter, and $10.2 million in the six months - far exceeding chief executive Saw Phaik Hwa's target when she first set out to improve rental yield by revamping the retail concept in MRT sites three years ago.
Looking ahead, SMRT expects rail and bus ridership in the third quarter to be higher than in the same period last year. The Oct 1 fare hike will also kick in. But it expects costs to rise on the back of repairs and maintenance and the mid-life upgrade of trains. It also said diesel prices would be volatile.
Directors have recommended a dividend of 1.5 cents per share for the interim, unchanged from previously.
At least one analyst expects the Government's renewed drive to raise public transport ridership to be positive for SMRT.
[email protected] -
More ppl will jump down the track liao.
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That also means more people strike 4D.Originally posted by T.Ryousuke:More ppl will jump down the track liao. -
And more ghosts at your workplace.Originally posted by Manager433:That also means more people strike 4D.
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Originally posted by T.Ryousuke:More ppl will jump down the track liao.
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Always fare hike.
Say rising costs, but rising profits too!
Say need to improve service quality?
I don't see so. Trains still very crowded, stations still not that well maintained (look at toilets for example). -
Selectively missed the fare hike part which resulted in profits. We are all reading SHI.T nowadays. Oh sorry, all along.
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For Comfort, they're hoping that eventually for every dollar of profit, 70cents comes from overseasOriginally posted by play_n_play:comfort also posted very good finacial result a few months back...
but it said more than 50% of its profit is from its investment out of SG...
is this the reason why it increased the price?
Seriously they wanna buy more double decks than single decks, it should be from their expenses as of the potential better revenue/ turnover if it means better transport sv -
Comfort is now the second largest transport company in the world. Seriously I don't see why it is neccessary.
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So your're saying they should just stay local?Originally posted by redstone:Comfort is now the second largest transport company in the world. Seriously I don't see why it is neccessary. -
Smrt or comfortgigolo or SBS have to answer to its shareholders mah, you all peasants don't know meh......So..I wonder who are the major shares holders hor......Are they the mini-stars, the high ranking officials, the elites or someone with big arseholes??????
Everytime I heard someone (big arse) say hor.....we must privatise..so we could progress farther. So I see......actually it is progressing farther into their own pockets..
KNN KNN KNN -
most of the listed companies are own by the same few shareholders.