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SBS Transit's Q1 profit surges 70% on lower fuel costs
BUS and train operator SBS Transit on Wednesday reported a 69.5 per cent jump in first-quarter net profit on the back of a fall in fuel and electricity costs, and higher revenue.
Net profit for the three months ended March 31, 2016, stood at S$8.08 million, up from S$4.77 million a year ago.
Revenue rose 6.6 per cent to S$263 million from a year ago, boosted by its rail segment that registered an increase in average daily ridership on Downtown Line (DTL) 2. This was offset in part by the lower average fare for North-East Line (NEL) and Light Rail Transit (LRT) due to the fare reduction from Dec 27, 2015.
Fuel and electricity costs fell 31.5 per cent to S$28.9 million, reflecting lower oil prices, while depreciation costs also eased. These buffered a rise in staff costs partly from staff hires for DTL, as well as higher repair and maintenance costs. All in, total operating cost rose 5 per cent to S$252 million - at a slower pace than the 6.6 per cent rise in revenue.