SBS Transit H2 net profit more than doubles to S$33.4m on higher demand

TRANSPORT operator SBS Transit’s net profit for its second half (H2) has more than doubled, on the back of increased demand for its services as Singapore emerged from the Covid-19 pandemic in 2022.

Net profit for the six months ended Dec 31, 2022 rose 120.2 per cent to S$33.4 million, from S$15.2 million in 2021. This was due mainly to demand for the group’s services recovering from lowered demand in 2021, SBS Transit said in a regulatory filing on Wednesday (Feb 22).

Group revenue for H2 2022 came in at S$782.9 million, up 16.8 per cent from S$670 million in the second half of 2021.

However, it was moderated by an increase in operating costs in H2 2022; fuel and electricity costs rose 71 per cent to S$138.8 million, compared with the same period in 2021, while staff costs increased 16.9 per cent to S$363.6 million. The board has proposed a final dividend of 5.45 Singapore cents per share for H2 2022, SBS Transit said.

For the full year ended Dec 31, 2022, net profit rose 31.7 per cent to S$68 million, while revenue gained 15.6 per cent to S$1.52 billion. Earnings per share for FY2022 stood at 21.81 Singapore cents per share, from 16.56 Singapore cents per share in FY2021.

Demand for rail services increased by 32.9 per cent in 2022, with some 360.7 million passenger trips made as more people returned to work and leisure activities with the easing of pandemic curbs, SBS Transit noted. However, this was still 18.9 per cent below pre-Covid levels in 2019, the transport operator added.

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“As Singapore moves closer to pre-pandemic normalcy, we expect demand for our services to grow, but we are mindful of the increased cost pressures from manpower and electricity,” said SBS Transit group chief executive Jeffrey Sim.

With the removal of the remaining Covid-19 restrictions in February, overall revenue is expected to improve, SBS Transit said. However, it expects revenue from bus operations to “see a hit” from revised lower service fees for five negotiated bus packages, which took effect from September last year.

Shares of SBS Transit closed 1.6 per cent or S$0.04 higher to S$2.60 on Wednesday, prior to the announcement.