SBS Transit has reported revenue of $732.4 million for 1HFY2022 ended June, up 14.3% y-o-y. However, costs grew as well. As a result, earnings for the same period was down 5% to $36.4 million.
According to the bus and rail operator, operating costs increased by 14.4%, no thanks to higher fuel, electricity and labour expenses.
Its operating profit for 1HFY2022 was up 12.6% y-o-y, thanks to a recovering economy which led to higher ridership.
“We are seeing a steady increase in rail ridership as more workers return to the workplace with the gradual easing of COVID19 measures,” says CEO Cheng Siak Kian.
“However, it's still early days to say if ridership will recover to pre-Covid 19 levels due to hybrid work arrangements and we are closely monitoring the situation.
“Meanwhile, the tight labour market and the spike in energy prices remain as key challenges for our business. In spite of these, our commitment in operating reliable bus and train services for our passengers remains steadfast,” he adds.
The company plans to pay an interim dividend of 5.45 cents per share, representing a payout ratio of 49.1%.
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SBS Transit shares closed at $2.84 up 0.35%.
