SBS Transit Q3 profit after tax up 4.7% on higher interest income

SBS Transit posted a 4.7 per cent rise in profit after tax for the third quarter ended Sep 30, to S$17.9 million from S$17.1 million a year earlier.

The increase was a result of higher interest income, and came in spite of a 0.7 per cent decline in revenue to S$387.8 million over the same period from S$390.5 million the year before.

In a business update on Friday (Nov 10), the public transport operator said revenue fell due to the lower service fee rates for five extended negotiated bus contracts that came into effect from Sep 1, 2022, and lower fuel indexation.

However, this was partially offset by higher rail ridership, as well as more advertising campaigns due to improved post-pandemic economic conditions.

SBS Transit attributed a 0.7 per cent drop in operating costs – to S$369 million – to lower manpower costs from vacancy gaps, reduced premises costs and lower diesel costs, even as electricity expenses rose.

In the business update, SBS Transit said it will remain the operator for the Bukit Merah bus package for a further five years from April 2024, after the result of the PT218 tender was announced in August this year.

It will also continue to operate the Ulu Pandan Bus Depot, as well as manage the Bukit Merah and Harbourfront bus interchanges as part of the Bukit Merah package.

However, SMRT will take over the operator’s Jurong West package for a five-year period from September 2024.

SBS Transit noted that quarter on quarter, ridership on the North East Line and Downtown Line rose to 93 per cent and 91 per cent of pre-pandemic levels, respectively, in Q3. This was an increase from 89 per cent and 86 per cent in Q2. The company added that it expects rail ridership to continue improving.

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SBS Transit shares fell 1.2 per cent or S$0.03 to end at S$2.53 on Friday, before the release of the business update.