SINGAPORE - Listed transport operator SBS Transit has posted a 1.5 per cent rise in net earnings to $69.1 million as revenue grew 0.8 per cent to $1.53 billion for the full year ended Dec 31, 2023.
Total comprehensive income attributable to shareholders – which includes transactions passing through its reserves – rose by 3.2 per cent to $69.2 million.
Although one of its smallest profit growths on record, the group’s net earnings are now at their highest since the Covid-19 pandemic.
In an announcement to the Singapore Exchange on Feb 27, the majority-owned subsidiary of transport giant ComfortDelGro Corp said total expenses had crept up by 1.1 per cent to $1.45 billion, largely on the back of a noticeable increase in fuel and energy costs, but partially offset by lower repair and maintenance costs.
Earnings per share rose to 22.15 cents, from 21.81 cents in 2022.
Cash and equivalents rose to $372 million, up from $345.3 million.
Net asset value per share stood at $2.19, up from a restated $2.07 in 2022.
SBS Transit (SBST) group chief executive Jeffrey Sim said: “As Singapore returned to pre-pandemic normalcy, we have seen a steady recovery of ridership.
“We kept (the) focus on strengthening our operational excellence, enhancing customer experience and sustainability efforts.”
Revenue from SBST’s public transport services rose by 0.4 per cent to $1.47 billion on the back of higher ridership and higher bus mileage, offset by lower fuel indexation coupled with the full-year impact from a lower service fee rate for extended negotiated contract packages with effect from September 2022.
Average daily ridership for the North East Line grew by 17.3 per cent to 570,000 trips, while the Sengkang-Punggol LRT ridership climbed 17.4 per cent to 159,000 trips.
The increase for the Downtown MRT line was starker at 21 per cent, to 443,000 trips per day.
Revenue from other commercial services rose by 13 per cent to $56.9 million on the back of higher advertising revenue.
Group operating profit shrank by 4.1 per cent to $76.7 million.
Directors are declaring a final dividend of 5.58 cents, up from 5.45 cents for 2022.
Looking at the year ahead, they expect rail fare revenue to grow with higher ridership and a fare increase which kicked in from Dec 23, 2023.
Bus revenue will see a drop with the expiry of the Jurong West bus package, which will be handed over to SMRT from Sept 1, 2024.
Under the terms of the Downtown Line’s transition to the New Rail Financing Framework (Version 2), SBST Rail was to hand over the rail advertising business to the Land Transport Authority (LTA) from Jan 1, 2024.
However, SBST Rail made representations to the authority to retain it, during LTA’s consultation of the advertising industry on rail advertising in 2023.
Following a review by LTA, SBST Rail was allowed to continue operating the rail advertising business from Jan 1, 2024, till the end of the rail lines’ licence period on Dec 31, 2032, at a concession fee to be set by the authority.
Operating costs remain a challenge owing to cost uncertainties arising from inflation, a tight labour market and elevated electricity prices, the directors added.
