TRANSPORT giant ComfortDelGro : C52 0% posted a 30.4 per cent increase in net profit to S$118.7 million for the first half of 2022 on Friday (Aug 12), up from S$91 million a year earlier.

Revenue over the same period also climbed 6.7 per cent to S$1.86 billion on the back of stronger contributions from all but its taxi segment.

An interim dividend of S$0.0285 per share and a special dividend of S$0.0141 have been declared. This is higher than the S$0.021 interim dividend paid out for the same period a year earlier.

The special dividend came from a one-off exceptional gain of S$30.5 million from disposal of the group’s Alperton property in London. Excluding the gain, net profit stood at S$88.2 million.

As for the individual segments, the group’s public transport services business saw revenue grow 8.1 per cent to S$1.49 billion year-on-year on improved rail ridership and fuel indexation in Singapore. Auckland One Rail, the group’s 50 per cent joint venture, also made its maiden contribution for the half-year.

Revenue from the group’s automotive engineering services, which accounts for the vehicular maintenance and repair services, also saw revenue increase by 17.1 per cent to S$100.1 million year-on-year from higher fuel sales, although operating profit declined 16.1 per cent to S$4.7 million over the same period as fuel sales adjustments lagged oil price increases.

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Revenue from the group’s inspection and testing services business grew 8.6 per cent to S$53.3 million year on year on stronger demand for non-vehicle testing services, while the car rental and leasing segment rose 16.9 per cent to S$15.2 million on an increase in its private hire vehicle fleet.

On the other hand, the taxi business saw revenue decline 6.5 per cent to S$211.3 million, which ComfortDelGro attributed to the different lockdowns in China and the lack of contributions from the divested London and Ho Chi Minh taxi businesses.

Still, operating profit for the segment rose 18.4 per cent to S$21.2 million due to stronger revenue generated by its Singapore taxi business, which benefitted from relaxed Covid-19 measures, and lower operating costs of the China and UK taxi businesses.

For the rest of 2022, ComfortDelGro said that it remains cautiously optimistic.

“Public transport services will continue to be supported by fuel indexation on public bus contracts although there is uncertainty over the effectiveness of the indexation formulas in the long term should high fuel prices persist,” the group said.

It added that 5 public bus contracts in Singapore will see an amendment to the service payable by the Land Transport Authority as they are benchmarked against recent bus tenders, which are lower than the current service fee.

The group also noted that high inflation rates will continue to put margins under pressure across the group.

Still, the group said that it will continue to monitor interest rates while managing borrowings. It had a net cash position of S$602.6 million as at 30 Jun, 2022.

ComfortDelGro shares were unchanged at S$1.46 on Friday.