(From Article)
SINGAPORE--SMRT swung to a net loss in its fourth quarter, hit by a combination of higher repair and maintenance costs and an increase in staff costs.
In the quarter ended March 31, the company recorded a net loss of S$12 million, a sharp contrast to the S$13.9 million net profit recorded in the same period last year. While revenue increased by 2.4 per cent to S$281.3 million, operating expenses grew at an accelerated pace, increasing by 12.9 per cent to S$297 million.
SMRT said that its “profitability will be further eroded in the next twelve months by the continuing misalignment between fares and operating costs.”
It added that losses in its bus business will continue to increase because of higher energy and staff costs, and the need to replace and grow the fleet size to meet operational demands.
Chief executive officer Desmond Kuek said that SMRT continues to focus on improving the reliability and availability of transport services while taking measures to improve productivity and efficiency.
“At the same time, discussions are ongoing with the government on more sustainable models for both the Trains and Bus businesses.”
SMRT Corporation Ltd announced that the Board has proposed a final dividend of SGD0.01 per ordinary share. Including the interim SGD0.015, this will bring total FY 2013 dividend to SGD0.025.
Share price drop to as low as 1.46 on 30Apr.
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