SBS Transit Q3 profit drops 30%
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Turnover, ridership went up, but operational cost also went up
But SBS is still delcaring special divd to shareholders -
Higher costs cut SBS Transit's profits by 30%
Maintenance, depreciation, staff and fuel expenses all up
Straits Times, The (Singapore)
Money
November 13, 2007
Author: Gabriel Chen
PUBLIC transport operator SBS Transit's third-quarter net profit plunged 30 per cent to $10 million, on the back of higher operational costs.
More expensive repairs and maintenance, as well as higher depreciation, staff costs and fuel costs all hurt the company's bottom line.
For the nine months ended Sept 30, the company, which operates most of the buses in Singapore and the North-East MRT Line (NEL), posted a 2.4 per cent rise in net profits to $41.6 million.
The ComfortDelGro subsidiary said revenue for the third quarter rose by 5.1 per cent to $170.3 million, attributable mainly to higher bus and rail fare revenue and higher advertisement income.
For example, its bus operations segment contributed the most in turnover, up by 2.4 per cent to $136.5 million for the third quarter, compared to the corresponding period last year.
Bus ridership was up 4 per cent.
Turnover from rail operations gained 19.6 per cent to $22.2 million, buoyed by increased ridership for the NEL and the two light rail transit systems.
Turnover from the company's advertising business rose 18.3 per cent to $7.4 million, on the back of higher bus advertisements.
Still, the healthy growth was offset by higher expenses.
Group operating expenses for the third quarter were up 8.7 per cent to $159.3 million, the company said yesterday.
In the third quarter, staff costs rose 3.8 per cent to $71.2 million, while the cost of repairs and maintenance to its fleet of vehicles weighed in, up 23.2 per cent to $23.6 million.
Higher energy and fuel costs also hurt the company, rising 3.4 per cent to $34.3 million, compared to the same period last year.
Third-quarter depreciation expenses jumped 56 per cent to $9.4 million from $6 million previously.
Quarterly earnings per share fell from 4.74 cents to 3.27 cents, while net asset value per share fell to 81 cents as at Sept 30 from 90 cents as at Dec 31 last year.
The group has proposed a special cash dividend of eight cents a share less tax, payable on Dec 7.
Looking ahead, SBS Transit said bus turnover is expected to improve with continued growth in ridership levels.
But it expects depreciation expenses to increase due to the implementation of the Automatic Vehicle Management System and renewal of its existing bus fleet.
Staff costs are also expected to be higher, due to a rise in headcount and cost of hiring.
And repairs and maintenance expenses are expected to increase with the enhanced maintenance requirements of the bus fleet, it said.
'Energy and fuel costs are expected to remain volatile,' the company predicted yesterday.
The share price of SBS Transit closed four cents lower at $3.02 yesterday.
[email protected]
Copyright, 2007, Singapore Press Holdings Limited -
Didn't SMRT recently posted 30% jump in profit?
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Originally posted by ^tamago^:
So u all should know why I mentioned about the maintenance cost rite? Further cost cutting lor..
[b]Higher costs cut SBS Transit's profits by 30%
Maintenance, depreciation, staff and fuel expenses all up
Straits Times, The (Singapore)
Money
November 13, 2007
Author: Gabriel Chen
PUBLIC transport operator SBS Transit's third-quarter net profit plunged 30 per cent to $10 million, on the back of higher operational costs.
More expensive repairs and maintenance, as well as higher depreciation, staff costs and fuel costs all hurt the company's bottom line.
And repairs and maintenance expenses are expected to increase with the enhanced maintenance requirements of the bus fleet, it said.
'Energy and fuel costs are expected to remain volatile,' the company predicted yesterday.
The share price of SBS Transit closed four cents lower at $3.02 yesterday.
[email protected]
Copyright, 2007, Singapore Press Holdings Limited[/b]
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"But it expects depreciation expenses to increase due to the implementation of the Automatic Vehicle Management System and renewal of its existing bus fleet.Originally posted by chickenlittle2:So u all should know why I mentioned about the maintenance cost rite? Further cost cutting lor..
And repairs and maintenance expenses are expected to increase with the enhanced maintenance requirements of the bus fleet, it said."
What cost-cutting? More refurbishments expected.
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when are the fares going up
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Looks like we are going to expect a big boom in new buses. They got to replace alot of their buses in 2009 as all the Mercs would be deregistered without extension.
Shall we blame the cruel oil dealers that always raise oil prices without 'exceptable' reasons.
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HORRAY FOR SBST. I see them working very hard to improve SERVICE STANDARDS until SMRT
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The boss give u a tight budget and call you to continue or even increase the work or products.Originally posted by ^tamago^:"But it expects depreciation expenses to increase due to the implementation of the Automatic Vehicle Management System and renewal of its existing bus fleet.
And repairs and maintenance expenses are expected to increase with the enhanced maintenance requirements of the bus fleet, it said."
What cost-cutting? More refurbishments expected. -
Prices of commodities are based on demand and supply, and not price fixing, ie, Oil producers do not set the price for oil. If there is an increase in demand, and decrease in supply, prices would rise automatically, ceteris paribus.Originally posted by tintinspartan:Looks like we are going to expect a big boom in new buses. They got to replace alot of their buses in 2009 as all the Mercs would be deregistered without extension.
Shall we blame the cruel oil dealers that always raise oil prices without 'exceptable' reasons. -
How come other bosses don't face such a problem.Originally posted by chickenlittle2:The boss give u a tight budget and call you to continue or even increase the work or products.
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Would you rather spend more and get more compliments, or spend less and get more complaints? If SBST is willing to spend more for refurbishment of buses, I don't see why commuters would complain of less comfortable seats or air-cons.Originally posted by chickenlittle2:The boss give u a tight budget and call you to continue or even increase the work or products.
Everything comes with a price. If SBST chose to reduce operational costs and make their buses look dirty, I wonder what will it's customer satisfactory rate be. -
It is impossible that other bosses don't face such problem cos that's what my boss always give me such challenging problem.Originally posted by ^tamago^:How come other bosses don't face such a problem. -
haiz..Originally posted by Oceane:Would you rather spend more and get more compliments, or spend less and get more complaints? If SBST is willing to spend more for refurbishment of buses, I don't see why commuters would complain of less comfortable seats or air-cons.
Everything comes with a price. If SBST chose to reduce operational costs and make their buses look dirty, I wonder what will it's customer satisfactory rate be. -
True enough, they had upped their image over the past 8 years or so. They are doing things the TIBS way, providing good, clean buses and good service (or at least for some parts of Singapore, for some other parts, maybe not).Originally posted by Oceane:Would you rather spend more and get more compliments, or spend less and get more complaints? If SBST is willing to spend more for refurbishment of buses, I don't see why commuters would complain of less comfortable seats or air-cons.
Everything comes with a price. If SBST chose to reduce operational costs and make their buses look dirty, I wonder what will it's customer satisfactory rate be. -
i think its a waste of money to refurb buses.
if u want to refurb , might as well change the look and feel of the bus.
like provide a better experience by installing coach style headrest seats and installing wheelchair ramps for one step buses like dennis dart or the VO3x and VO2x/
ZYX -
Maybe they are up to the challenge.Originally posted by chickenlittle2:It is impossible that other bosses don't face such problem cos that's what my boss always give me such challenging problem. -
In the end SMRT triump with so tight budget,Cost-saving maintenance,Salaries,Bonuses.So they save more this year to buy new buses next year?Yes and expect more less bonuses for the bus staffs,Ditto for SBST bus staff most of them get less bonuses as they buy more new buses for this year round
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Yeah
No MRT fare hike = No extn snr citizen concession hrs for MRT
v