ComfortDelgro – BT

ComfortDelGro’s Q2 profit up 22.4% to $58.5m

THE two-percentage-point cut in Singapore’s corporate tax rate helped to boost ComfortDelGro’s net profit for the second quarter ended June 30 by 22.4 per cent to $58.5 million. The tax cut brought a $6.3 million reversal in deferred tax.

The land transport corporation’s Q2 revenue rose 8.1 per cent to $746.7 million compared to the same period a year ago on the back of strong contributions from its overseas operations.

The world’s second-largest land transport company said bus operations in Australia, the UK and China were responsible for most of the increase in turnover, along with taxi operations in the UK and China. As a result, overseas turnover now accounts for 47 per cent of the group’s total income – up from 45 per cent a year ago. Operating profit for Q2 rose by 8.4 per cent to $81.7 million.

‘Over the last few years, we have moved quickly to seize investment opportunities overseas while exercising financial prudence,’ said managing director and group CEO Kua Hong Pak. ‘Certainly, much of the growth going forward will come from our overseas operations.’

Energy and fuel costs for Q2 rose one per cent to $51.5 million. The group said this amount was lower than expected because of hedging.

But staff costs rose 12.6 per cent to $238 million as more staff were recruited for its expanding overseas operations.

For the first half, the group’s net profit increased 10.5 per cent to $113.9 million. Revenue rose 8.6 per cent to $1.46 billion.

An interim gross dividend of 3.35 cents – from 3.125 cents previously – has been declared. Together with a special gross dividend of 4.15 cents, the combined total interim gross dividend is 7.5 cents.

Earnings per share in H1 rose from 4.98 cents to 5.49 cents.

The group’s listed unit, SBS Transit, posted a 25.2 per cent jump in second quarter net profit to $14.5 million, mainly on rising rail ridership and advertisement revenue. SBST operates the North-east MRT Line. Q2 turnover also rose 9.5 per cent to $166.2 million on higher bus and rail fare revenue.

For the first half, SBST’s net profit grew 20.4 per cent to $31.6 million, while revenue increased 8.3 per cent to $329.1 million.

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