SBS Transit net earnings jump 17% to S$16.7m in FY15

A SURGE in operating profits from bus operations offset a plunge in rail profits to lift net earnings of transport operator SBS Transit for the year ended Dec 31, 2015.

Net earnings jumped 17 per cent to S$16.7 million, said SBS Transit after markets closed on Friday.

Revenue for the full year rose 7.7 per cent to S$1.02 billion as average daily ridership and fares increased for its bus and rail operations. In particular, revenue for its bus segment increased by 7.5 per cent to reach S$810.5 million, while its rail segment raked in 8.3 per cent in revenue to S$213.4 million.

But operating profit from buses saw a massive surge of 78.2 per cent, hitting S$22 million for 2015 "due mainly to higher revenue and lower fuel costs", said SBS Transit.

Rail operating profits on the other hand slumped by 61.9 per cent to hit S$3.2 million. SBS Transit attributed it to higher staff costs from Downtown Line 2, higher premises costs and higher other operating costs.

Earnings per share rose to 5.41 cents, up from 4.62 previously. Net tangible asset per share rose to S$1.10 from S$1.

The 75 per cent-owned subsidiary of ComfortDelGro Corp improved its margin before tax, depreciation and amortisation to 10.8 per cent, from 9.6 previously.

Directors are proposing a final dividend of 1.05 cents per share, unchanged from 2014.