PUBLIC transport operator SBS Transit : S61 -1.15% has been awarded the Bukit Merah Bus Package &ndash a five-year contract comprising 17 bus services &ndash for a second consecutive term.

 

This marks the third bus tender award that SBS Transit has won under the new bus contracting model, the mainboard-listed company announced on Friday (Aug 18). The contract can be extended by between two and five years.

 

The bus services under the contract are supported by the Ulu Pandan Bus Depot and originate from two bus interchanges &ndash Bukit Merah and HarbourFront &ndash and four bus terminals &ndash Kampong Bahru, Marina Centre, Queen Street and Shenton Way. It includes two cross-border services to Johor Bahru.

 

SBS Transit was previously awarded a five-year contract to operate the Bukit Merah Bus Package in 2018. The new contract will commence immediately upon the expiry of the current one in April 2024, following a six-month extension.

 

In its tender proposal, SBS Transit committed to establishing a new training and certification centre for bus captains. The company also has plans to build on previous sustainability programmes and pledged to achieve net zero energy building status.

 

&ldquo To be awarded the contract for a second consecutive term underscores the vote of confidence and trust that the Land Transport Authority has placed on us,&rdquo said SBS Transit group chief executive Jeffrey Sim.

 

With the latest contract win, SBS Transit remains the biggest public bus operator holding a 55 per cent market share. It operates 192 bus routes in Singapore under eight bus packages, of which two are tendered and six are negotiated.

 

PUBLIC transport operator SBS Transit reported on Friday (May 12) a 1.9 per cent improvement in net profit for the first quarter on the back of higher revenue, as ridership improved.

 

Net profit for the three months ended Mar 31 rose to S$15.8 million, from S$15.5 million in the year-ago period, according to a business update by the company on the Singapore Exchange.

 

The improved profitability came despite SBS Transit facing an 8.3 per cent rise in operating costs to S$351.6 million, from S$324.7 million a year earlier. The increase was a result of higher fuel and electricity costs, which in turn were caused by higher average electricity prices and higher overtime costs.

 

SBS Transit&rsquo s operating profit for Q1 FY2023 stood at S$16.4 million, 15.6 per cent lower than the S$19.4 million in the year-ago period.

 

Revenue for the quarter rose 6.9 per cent to S$367.9 million, from S$344.1 million the year before, mainly due to higher fare revenue arising from higher rail ridership. 

 

The transport operator noted that all remaining Covid-19 restrictions were lifted from Feb 13. It added that riderships for the North East Line and Downtown Line were respectively at 89 per cent and 88 per cent of their pre-Covid levels in Q1. 

This was higher than the 67 per cent and 62 per cent respectively in the same period a year earlier, as well as the 85 per cent and 81 per cent respectively in Q4 2022. 

 

Commenting on the outlook ahead, SBS Transit said: &ldquo While we expect rail ridership and other commercial services revenue to continue to improve, we are cautious that a full recovery to pre-pandemic levels may still take time.&rdquo

 

The company added that bus revenue will reflect the full-year impact of the lower service fees for the five extended negotiated bus packages contracts, which came into effect from Sep 1, 2022.

 

It also continues to face cost pressures, especially in energy and manpower, it said, adding that it &ldquo will continue to invest in technology and improve productivity to partially counter these&rdquo .

 

TRANSPORT operator SBS Transit&rsquo s : S61 +1.56% 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&rsquo 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 restrictions, SBS Transit said.

 

However, this was still 18.9 per cent below pre-Covid levels in 2019, the transport operator added.

 

&ldquo 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,&rdquo 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 &ldquo see a hit&rdquo from revised lower service fees for five negotiated bus packages, which took effect from September last year.

PUBLIC transport operator SBS Transit reported on Friday (Nov 11) a 23.4 per cent improvement in net profit for the third quarter on the back of higher revenue, as ridership improved. 

 

Net profit for the three months ended Sep 30 rose to S$17.1 million, from S$13.9 million in the year-ago period, according to a business update on the Singapore Exchange.

 

The improved profitability came despite the company not receiving any Covid-19 government reliefs in the latest quarter.

 

SBS Transit&rsquo s operating profit for Q3 FY2022 stood at S$19 million, higher than the S$14.1 million in the year-ago period, which included S$13.9 million in Covid-19 government reliefs.

 

Revenue for Q3 FY2022 rose 16.6 per cent on year to S$390.5 million, with public transportation services the main driver of the increase.

 

The transport operator noted that ridership for the North East Line and Downtown Line were respectively at 85 per cent and 83 per cent of their pre-Covid-19 levels in the third quarter of 2022. This was higher than the 49 per cent and 43 per cent respectively in the same period a year earlier.

 

For the first nine months of 2022, SBS Transit&rsquo s revenue rose 15.1 per cent on year to S$1.1 billion, while net profit rose 2.8 per cent to S$51.8 million.

 

&ldquo With the further relaxation of Covid-19 restrictions, we expect rail ridership and other commercial services revenue to improve,&rdquo SBS Transit said.

 

However, it added that the group also continues to face rising costs with higher inflation.

 

&ldquo Elevated energy prices will continue to create cost pressure to fuel and electricity spend. Manpower costs will also contribute to the increase amid a competitive labour market,&rdquo SBS Transit said.