He is not new to the company being the former COO so should know the business already.
SBS Transit *Official* (SGX:S61)
- Thread starter MisterLim001
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Shion
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Annual report FY2019
https://links.sgx.com/FileOpen/SBST - AR 2019.ashx?App=Announcement&FileID=602000
https://links.sgx.com/FileOpen/SBST - AR 2019.ashx?App=Announcement&FileID=602000
5408854088
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Shion
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Mass transit must evolve in post-pandemic world
Mass transit must evolve in post-pandemic world
Declining ridership and decentralised lifestyle habits mean bus, rail systems have to change
https://www.straitstimes.com/opinion/mass-transit-must-evolve-in-post-pandemic-world
When I was doing my Master of Science in Urban Transport Management at the Singapore University of Social Sciences some 10 years ago, my initial proposal for a thesis was on how mass transit might affect the transmission of diseases, as this was an unexplored area. My professor thought it was a great topic, but warned that I might have difficulty getting data. So I switched to something else.
I never imagined the world we are in now. Who did? A non-cellular pathogen that causes the infectious disease Covid-19 has turned our way of life upside down in a matter of months, and things may never revert to what they were.
Last month, I wrote about how we should seize this time of adversity to rethink and possibly transform our land transport system. But a lot of walls will have to come down before a new structure can be in place.
The biggest challenge is an obvious one. Mass transit systems are designed, financed, built and operated based on high-volume assumptions. Their very viability hinges on the vast number of people they move in as short a time as possible.
In a post-pandemic world, this proposition may go out the window, and possibly, for good. How can the model evolve so that it remains safe, and yet still be relevant to state, operator and end-user?
FALLING RIDERSHIP, LOWER REVENUE
First off, how will the new world order affect cost?
Before the coronavirus pandemic, the bus and rail systems here together catered to well over a billion trips per year. From 2010 to 2019, annual ridership went from two billion to 2.8 billion trips.
Assuming an average fare of $1.20 per trip, the volume adds up to $2.4 billion to $3.4 billion per year in revenue.
This revenue has traditionally been sufficient to keep the whole machinery running smoothly. Public transport operators are profitable, government subsidies are capped (mostly for infrastructure), commuters get value for money. On top of that, there is enough to go back into maintaining a relatively new fleet of buses, and renewing the rail network to ensure a high level of dependability.
As reported widely, this finely calibrated machinery broke down when the balance between operator profitability and asset replacement went out of kilter, exacerbated by a huge population influx.
The breakdowns were literal and repeated, as complaints about overcrowding on buses rose and the MRT system suffered frequent stoppages or delays, especially from 2010 to 2017. With an enormous injection of public funds - and plenty of grief - Singapore managed to right the public transport vessel once again.
Now, a tsunami in the form of the pandemic is threatening to topple it again. The deadly outbreak has decimated ridership by as much as 80 per cent. In dollar terms, that means wiping out $2.7 billion from last year's total fare revenue base.
Clearly, this means disaster for the entire system. There is no way the system can continue to be viable if only 20 per cent of commuters are using it.
Things will improve as the country puts a lid on transmission rate, and stay-home measures are eased. But it is highly unlikely that demand will bounce back 100 per cent in the near term.
Operators will not only have to continue to contend with lower patronage, but they will also have to carry on with reasonably high service frequency so as to maintain safe distancing measures.
ADJUSTING FARE FORMULA
This double whammy will translate to higher cost. The maths is pretty straightforward. Assuming overall ridership volume gradually rises to half of what it used to be before the pandemic, fares will have to double to $2.40 per trip to make up the lost revenue. Or government subsidies will have to increase by $1.7 billion. Or both sides will have to shoulder the cost. None of the options is palatable.
Public transport operators can of course run on thinner or no profit to share the burden, but that will not be viable in the long run either.
Singapore University of Social Sciences transport economist Walter Theseira says the formula's network capacity factor "will balloon this year because of excess capacity". This could send fares skyrocketing because ridership would be far lower than what the network was designed for.
Hence for the immediate term, the existing fare formula has to be suspended to prevent fares from soaring. In the longer term, the pandemic presents an opportunity to overhaul the fare adjustment formula. There have been repeated calls to link service quality to price, so that may be worth exploring.
DIFFERENT TRAVEL PATTERNS
And what if the pandemic does not go away soon? Already, some countries are seeing transmission cases after lifting lockdown measures recently. A vaccine is a long way off. Even if one were to be ready tomorrow, it will take several years to vaccinate the world's population of 7.6 billion.
Hence a new public transport model will have to emerge - one which takes into account lighter loads, different travel patterns and new operating regimens.
Fares and tax subsidies will have to be adjusted to reflect this new reality. On the other hand, maintenance, repairs and asset renewal plans could be spaced out more.
Much of the wear and tear on our rail system, for instance, happens during peak hours, when the system is stretched to its limits.
With a lighter overall load, and hopefully with demand spread out more evenly throughout the day as people and businesses learn to operate in a safe-distanced world, this aspect of operating cost can come down.
But with reduced ridership lowering revenues, the financial sustainability of the transport operators is a real issue.
Nationalisation may be one way for the transition, as it removes operator profitability - often a sticking point - out of the equation. As it is, Singapore's land transport system is one step away from nationalisation, with the Government paying for bus contracts, and the state taking over ownership of all rail assets.
SMRT, which runs most of the rail systems, is now an unlisted, private company. Bus operators, a mix of listed (for example, SBS Transit) and non-listed (for example, Tower Transit) firms, bid to run bus services.
Beyond issues of capacity and demand, the evolution of how people commute has larger implications. Dr Theseira reckons "low travel volume would mean low utilisation of the Central Business District, and hence real estate values can't be sustained".
"That problem would far outstrip the public transit one, since the value of cities is based entirely on having a large number of people working in the same area at the same time," he adds.
Again, this presents a silver lining. Namely, an added impetus for Singapore's decentralisation plan. For decades, ambitions to reshape the city to allow people to work and play nearer to where they live have been hampered by fears that the plan would hollow out the CBD.
In a virtuous way, a more geographically dispersed city-state will lead to lighter and more evenly distributed commuter loads. Which in turn means lower maintenance expenses for transport operations.
In the far horizon, perhaps lighter rail systems may become more sustainable. Their lower capacity may be offset by better connectivity which will narrow first and last miles. There could be many of such lines linking residential, commercial and leisure nodes within a precinct, instead of massive heavy-load transit lines which operate at maximum loads for two hours in a day in each direction but are under-used the rest of the time.
In essence, even as the pandemic exerts immense economic and personal hardships, it encourages us to relook the way we live, and to find alternatives.
We should not be blind to the possibilities of such alternatives, even if we long to go back to how things were previously.
Mass transit must evolve in post-pandemic world
Declining ridership and decentralised lifestyle habits mean bus, rail systems have to change
https://www.straitstimes.com/opinion/mass-transit-must-evolve-in-post-pandemic-world
When I was doing my Master of Science in Urban Transport Management at the Singapore University of Social Sciences some 10 years ago, my initial proposal for a thesis was on how mass transit might affect the transmission of diseases, as this was an unexplored area. My professor thought it was a great topic, but warned that I might have difficulty getting data. So I switched to something else.
I never imagined the world we are in now. Who did? A non-cellular pathogen that causes the infectious disease Covid-19 has turned our way of life upside down in a matter of months, and things may never revert to what they were.
Last month, I wrote about how we should seize this time of adversity to rethink and possibly transform our land transport system. But a lot of walls will have to come down before a new structure can be in place.
The biggest challenge is an obvious one. Mass transit systems are designed, financed, built and operated based on high-volume assumptions. Their very viability hinges on the vast number of people they move in as short a time as possible.
In a post-pandemic world, this proposition may go out the window, and possibly, for good. How can the model evolve so that it remains safe, and yet still be relevant to state, operator and end-user?
FALLING RIDERSHIP, LOWER REVENUE
First off, how will the new world order affect cost?
Before the coronavirus pandemic, the bus and rail systems here together catered to well over a billion trips per year. From 2010 to 2019, annual ridership went from two billion to 2.8 billion trips.
Assuming an average fare of $1.20 per trip, the volume adds up to $2.4 billion to $3.4 billion per year in revenue.
This revenue has traditionally been sufficient to keep the whole machinery running smoothly. Public transport operators are profitable, government subsidies are capped (mostly for infrastructure), commuters get value for money. On top of that, there is enough to go back into maintaining a relatively new fleet of buses, and renewing the rail network to ensure a high level of dependability.
As reported widely, this finely calibrated machinery broke down when the balance between operator profitability and asset replacement went out of kilter, exacerbated by a huge population influx.
The breakdowns were literal and repeated, as complaints about overcrowding on buses rose and the MRT system suffered frequent stoppages or delays, especially from 2010 to 2017. With an enormous injection of public funds - and plenty of grief - Singapore managed to right the public transport vessel once again.
Now, a tsunami in the form of the pandemic is threatening to topple it again. The deadly outbreak has decimated ridership by as much as 80 per cent. In dollar terms, that means wiping out $2.7 billion from last year's total fare revenue base.
Clearly, this means disaster for the entire system. There is no way the system can continue to be viable if only 20 per cent of commuters are using it.
Things will improve as the country puts a lid on transmission rate, and stay-home measures are eased. But it is highly unlikely that demand will bounce back 100 per cent in the near term.
Operators will not only have to continue to contend with lower patronage, but they will also have to carry on with reasonably high service frequency so as to maintain safe distancing measures.
ADJUSTING FARE FORMULA
This double whammy will translate to higher cost. The maths is pretty straightforward. Assuming overall ridership volume gradually rises to half of what it used to be before the pandemic, fares will have to double to $2.40 per trip to make up the lost revenue. Or government subsidies will have to increase by $1.7 billion. Or both sides will have to shoulder the cost. None of the options is palatable.
Public transport operators can of course run on thinner or no profit to share the burden, but that will not be viable in the long run either.
Singapore University of Social Sciences transport economist Walter Theseira says the formula's network capacity factor "will balloon this year because of excess capacity". This could send fares skyrocketing because ridership would be far lower than what the network was designed for.
Hence for the immediate term, the existing fare formula has to be suspended to prevent fares from soaring. In the longer term, the pandemic presents an opportunity to overhaul the fare adjustment formula. There have been repeated calls to link service quality to price, so that may be worth exploring.
DIFFERENT TRAVEL PATTERNS
And what if the pandemic does not go away soon? Already, some countries are seeing transmission cases after lifting lockdown measures recently. A vaccine is a long way off. Even if one were to be ready tomorrow, it will take several years to vaccinate the world's population of 7.6 billion.
Hence a new public transport model will have to emerge - one which takes into account lighter loads, different travel patterns and new operating regimens.
Fares and tax subsidies will have to be adjusted to reflect this new reality. On the other hand, maintenance, repairs and asset renewal plans could be spaced out more.
Much of the wear and tear on our rail system, for instance, happens during peak hours, when the system is stretched to its limits.
With a lighter overall load, and hopefully with demand spread out more evenly throughout the day as people and businesses learn to operate in a safe-distanced world, this aspect of operating cost can come down.
But with reduced ridership lowering revenues, the financial sustainability of the transport operators is a real issue.
Nationalisation may be one way for the transition, as it removes operator profitability - often a sticking point - out of the equation. As it is, Singapore's land transport system is one step away from nationalisation, with the Government paying for bus contracts, and the state taking over ownership of all rail assets.
SMRT, which runs most of the rail systems, is now an unlisted, private company. Bus operators, a mix of listed (for example, SBS Transit) and non-listed (for example, Tower Transit) firms, bid to run bus services.
Beyond issues of capacity and demand, the evolution of how people commute has larger implications. Dr Theseira reckons "low travel volume would mean low utilisation of the Central Business District, and hence real estate values can't be sustained".
"That problem would far outstrip the public transit one, since the value of cities is based entirely on having a large number of people working in the same area at the same time," he adds.
Again, this presents a silver lining. Namely, an added impetus for Singapore's decentralisation plan. For decades, ambitions to reshape the city to allow people to work and play nearer to where they live have been hampered by fears that the plan would hollow out the CBD.
In a virtuous way, a more geographically dispersed city-state will lead to lighter and more evenly distributed commuter loads. Which in turn means lower maintenance expenses for transport operations.
In the far horizon, perhaps lighter rail systems may become more sustainable. Their lower capacity may be offset by better connectivity which will narrow first and last miles. There could be many of such lines linking residential, commercial and leisure nodes within a precinct, instead of massive heavy-load transit lines which operate at maximum loads for two hours in a day in each direction but are under-used the rest of the time.
In essence, even as the pandemic exerts immense economic and personal hardships, it encourages us to relook the way we live, and to find alternatives.
We should not be blind to the possibilities of such alternatives, even if we long to go back to how things were previously.
Shion
Senior Mentor
- Joined
- Oct 24, 2008
- Messages
- 361,896
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- 112,745
SBS Transit's Q1 profit after tax nearly halves, led by fall in public transport services
SBS Transit's Q1 profit after tax nearly halves, led by fall in public transport services
https://www.businesstimes.com.sg/co...nearly-halves-led-by-fall-in-public-transport
SBS Transit's profit after tax fell 46.1 per cent on the year to S$11.1 million for the first quarter, led by a decline in public transport services.
The group, which is 75-per-cent owned by ComfortDelGro Group, said that "the path of recovery to normal is expected to be very gradual", with social distancing expected to continue even after Singapore's lockdown period is over.
It recorded a more than 80-per-cent drop in public transport ridership during the lockdown period (termed "circuit breaker") compared to pre-Covid-19, as most workplaces were closed.
SBS said it has over S$250 million in available cash and bank facilities undrawn to "underpin" the continuity of the business. Still, non-essential capital expenditure will be deferred as the group focuses on managing cash.
The group's directors had their fees cut by 20 per cent since April. This will be reviewed at the end of June; otherwise, it will continue till the end of the year.
For the first quarter ended March 31, revenue was down 3.3 per cent year on year to S$339 million, SBS said in an update on Thursday. This was led by a decline in public transport services, which recorded lower service fees and ridership.
Other commercial services also contributed to the fall, largely owing to lower advertising.
Shares of SBS, trading cum-dividend, closed unchanged at S$2.79 on Thursday before the announcement.
SBS Transit's Q1 profit after tax nearly halves, led by fall in public transport services
https://www.businesstimes.com.sg/co...nearly-halves-led-by-fall-in-public-transport
SBS Transit's profit after tax fell 46.1 per cent on the year to S$11.1 million for the first quarter, led by a decline in public transport services.
The group, which is 75-per-cent owned by ComfortDelGro Group, said that "the path of recovery to normal is expected to be very gradual", with social distancing expected to continue even after Singapore's lockdown period is over.
It recorded a more than 80-per-cent drop in public transport ridership during the lockdown period (termed "circuit breaker") compared to pre-Covid-19, as most workplaces were closed.
SBS said it has over S$250 million in available cash and bank facilities undrawn to "underpin" the continuity of the business. Still, non-essential capital expenditure will be deferred as the group focuses on managing cash.
The group's directors had their fees cut by 20 per cent since April. This will be reviewed at the end of June; otherwise, it will continue till the end of the year.
For the first quarter ended March 31, revenue was down 3.3 per cent year on year to S$339 million, SBS said in an update on Thursday. This was led by a decline in public transport services, which recorded lower service fees and ridership.
Other commercial services also contributed to the fall, largely owing to lower advertising.
Shares of SBS, trading cum-dividend, closed unchanged at S$2.79 on Thursday before the announcement.
athletic91
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Under the LTA bus contracting model, lower ridership should not affect profits.
LTA pays SBS a fixed amount to run the service, the fares collected goes to LTA. So if lower ridership, LTA collects lesser fare but still needs to pay SBS the agreed amount to keep the buses running
LTA pays SBS a fixed amount to run the service, the fares collected goes to LTA. So if lower ridership, LTA collects lesser fare but still needs to pay SBS the agreed amount to keep the buses running
- Joined
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For the record, SBST runs the Downtown Line and North-East Line too, and they are not based on this financing model (i.e. the Government does not assume full revenue risk for these train lines). Also, contracts under the bus contracting model can be subject to a small degree of variations, which is assumed as business risk even though the Government assumes full revenue risk here.
MichealScott
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Right..Thanks. I was still wondering why in their report why they were concern with lower ridership affecting their revenue..So it was a concern for the trains segment.
Anyway, now $2.67. Thinking of vesting in
5408854088
High Supremacy Member
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Notification of Release of First Half Results for Financial Year 2020 on 13 August 2020
https://links.sgx.com/1.0.0/corpora...6207752d4117a01f3743e4d866136c4426d2c13bb461d
https://links.sgx.com/1.0.0/corpora...6207752d4117a01f3743e4d866136c4426d2c13bb461d
5408854088
High Supremacy Member
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Government grants keep SBS Transit in the black in the first half of 2020
https://www.straitstimes.com/singap...ransit-in-the-black-in-the-first-half-of-2020
https://www.straitstimes.com/singap...ransit-in-the-black-in-the-first-half-of-2020
Shion
Senior Mentor
- Joined
- Oct 24, 2008
- Messages
- 361,896
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- 112,745
SBS Transit's H1 net profit down 27.4% on lower ridership
SBS Transit's H1 net profit down 27.4% on lower ridership
https://www.businesstimes.com.sg/co...its-h1-net-profit-down-274-on-lower-ridership
TRANSPORT operator SBS Transit posted a 27.4 per cent fall in net profit to S$32.6 million for the half-year ended June 30, 2020 as the use of public transport declined during the pandemic.
The impact of Covid-19 on the group's bottom line was largely cushioned by government grants of S$61.6 million, with most of the support coming from a 10-month wage subsidy. Without the government grants, the company would have incurred an operating loss of S$29.4 million.
Revenue was down 14.9 per cent to S$603.2 million, mainly due to lower rail ridership during the "circuit breaker" period in Singapore.
Total operating expenses fell 12.5 per cent to S$571 million. The group mostly saw a dip in expenses across the board, with staff costs decreasing by 16.8 per cent to S$295.9 million. But the cost of repairs and maintenance rose 13.4 per cent to S$101.7 million.
The group said repairs and maintenance costs are expected to increase with the on-going mid-life refurbishment of the North-east line and Sengkang-Punggol LRT fleet, ageing bus and train fleets, and continued investments in predictive maintenance capabilities.
SBS Transit's earnings per share was 10.45 Singapore cents, compared with 14.39 cents a year ago.
The group expects revenue from public transport services to be lower compared to the year before. After the circuit breaker, rail ridership was at about 50 per cent of what it was during the pre-pandemic period. Ridership is expected to remain low as working from home continues to be the default mode, and cross-border travels remain restricted.
Bus service revenue is likely to be lower as well, due to lower fuel indexation and reduction in mileage as a result of curtailment of cross-border and selected central business district services.
No interim dividend was declared as a result of the decision to conserve cash. A year ago, SBS Transit had declared an interim dividend of 7.15 Singapore cents.
The counter closed at S$2.82 on Thursday, up S$0.03 or 1.08 per cent.
SBS Transit's H1 net profit down 27.4% on lower ridership
https://www.businesstimes.com.sg/co...its-h1-net-profit-down-274-on-lower-ridership
TRANSPORT operator SBS Transit posted a 27.4 per cent fall in net profit to S$32.6 million for the half-year ended June 30, 2020 as the use of public transport declined during the pandemic.
The impact of Covid-19 on the group's bottom line was largely cushioned by government grants of S$61.6 million, with most of the support coming from a 10-month wage subsidy. Without the government grants, the company would have incurred an operating loss of S$29.4 million.
Revenue was down 14.9 per cent to S$603.2 million, mainly due to lower rail ridership during the "circuit breaker" period in Singapore.
Total operating expenses fell 12.5 per cent to S$571 million. The group mostly saw a dip in expenses across the board, with staff costs decreasing by 16.8 per cent to S$295.9 million. But the cost of repairs and maintenance rose 13.4 per cent to S$101.7 million.
The group said repairs and maintenance costs are expected to increase with the on-going mid-life refurbishment of the North-east line and Sengkang-Punggol LRT fleet, ageing bus and train fleets, and continued investments in predictive maintenance capabilities.
SBS Transit's earnings per share was 10.45 Singapore cents, compared with 14.39 cents a year ago.
The group expects revenue from public transport services to be lower compared to the year before. After the circuit breaker, rail ridership was at about 50 per cent of what it was during the pre-pandemic period. Ridership is expected to remain low as working from home continues to be the default mode, and cross-border travels remain restricted.
Bus service revenue is likely to be lower as well, due to lower fuel indexation and reduction in mileage as a result of curtailment of cross-border and selected central business district services.
No interim dividend was declared as a result of the decision to conserve cash. A year ago, SBS Transit had declared an interim dividend of 7.15 Singapore cents.
The counter closed at S$2.82 on Thursday, up S$0.03 or 1.08 per cent.
Shion
Senior Mentor
- Joined
- Oct 24, 2008
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- 112,745
SBS Transit reports 3Q EBITDA of $46.1 mil, says there will be no fare adjustments in fare review ex
SBS Transit reports 3Q EBITDA of $46.1 mil, says there will be no fare adjustments in fare review exercise
https://www.theedgesingapore.com/ca...l-says-there-will-be-no-fare-adjustments-fare
Public transport operator SBS Transit has reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $46.1 million for the 3QFY2020 ended September, down 10.3% from the $51.4 million reported a year ago.
Revenue for the quarter fell 17.0% y-o-y to $302.0 million mainly due to lower service fee, lower rail ridership and lower advertising revenue.
Revenue for its Public Transport Services and Other Commercial Services segments fell 15.7% y-o-y and 45.5% y-o-y for the 3QFY2020.
Operating costs fell 16.6% y-o-y to $282.5 million mainly due to lower staff costs that were mitigated by government reliefs, as well as lower costs from fuel, electricity, repairs and maintenance.
Operating profit fell 23.1% y-o-y to $19.5 million while profit after tax (PAT) fell 3.3% y-o-y to $19.4 million.
Without the Covid-19 government reliefs of $23.6 million, SBS says it would have recorded an operating loss of $4.04 million for the quarter.
Year-to-date (y-t-d) ended September, SBS Transit reported a 18.4% y-o-y decline in EBITDA to $159.8 million.
Revenue for the same period fell 15.7% y-o-y to $1.07 billion.
Operating profit y-t-d fell 30.5% y-o-y to $51.7 million.
Without the reliefs of $85.2 million, SBS would have logged losses of $33.4 million year-to-date.
Q-o-q, 3QFY2020 EBITDA was up 5.8% while revenue for the quarter rose 14.3%.
SBS says most of its bus services that were suspended during the circuit breaker period from April to June have resumed since Phase One of the re-openings. Its Night Owl and Cross Border Bus services will remain suspended till the end of 2020.
The company adds that there was a gradual increase in daily ridership on the Downtown Line (DTL) and the North East Line (NEL) after the circuit breaker measures ended.
As at end September, ridership for DTL and NEL stood 53% and 60% levels pre-Covid-19 respectively.
In the same update, the Public Transport Council (PTC) says it will not grant any fare adjustments in this year’s Fare Review Exercise (FRE) to help commuters mitigate the impact of Covid-19.
The maximum allowance fare adjustment computed for FRE 2020 of 4.4% will be rolled over to the next FRE in 2021, it says.
Other commercial services remain slow in its recovery due to the poor economic outlook.
As at end September, total assets for SBS rose 3.8% y-o-y to $1.18 billion mainly due to the increase in short-term deposits and bank balances. This was partially offset by the depreciation of vehicles, premises and equipment.
For the same period, SBS reported that it had over $250 million of available cash and bank facilities undrawn.
Shares in SBS Transit closed flat at $2.90 on Nov 11
SBS Transit reports 3Q EBITDA of $46.1 mil, says there will be no fare adjustments in fare review exercise
https://www.theedgesingapore.com/ca...l-says-there-will-be-no-fare-adjustments-fare
Public transport operator SBS Transit has reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $46.1 million for the 3QFY2020 ended September, down 10.3% from the $51.4 million reported a year ago.
Revenue for the quarter fell 17.0% y-o-y to $302.0 million mainly due to lower service fee, lower rail ridership and lower advertising revenue.
Revenue for its Public Transport Services and Other Commercial Services segments fell 15.7% y-o-y and 45.5% y-o-y for the 3QFY2020.
Operating costs fell 16.6% y-o-y to $282.5 million mainly due to lower staff costs that were mitigated by government reliefs, as well as lower costs from fuel, electricity, repairs and maintenance.
Operating profit fell 23.1% y-o-y to $19.5 million while profit after tax (PAT) fell 3.3% y-o-y to $19.4 million.
Without the Covid-19 government reliefs of $23.6 million, SBS says it would have recorded an operating loss of $4.04 million for the quarter.
Year-to-date (y-t-d) ended September, SBS Transit reported a 18.4% y-o-y decline in EBITDA to $159.8 million.
Revenue for the same period fell 15.7% y-o-y to $1.07 billion.
Operating profit y-t-d fell 30.5% y-o-y to $51.7 million.
Without the reliefs of $85.2 million, SBS would have logged losses of $33.4 million year-to-date.
Q-o-q, 3QFY2020 EBITDA was up 5.8% while revenue for the quarter rose 14.3%.
SBS says most of its bus services that were suspended during the circuit breaker period from April to June have resumed since Phase One of the re-openings. Its Night Owl and Cross Border Bus services will remain suspended till the end of 2020.
The company adds that there was a gradual increase in daily ridership on the Downtown Line (DTL) and the North East Line (NEL) after the circuit breaker measures ended.
As at end September, ridership for DTL and NEL stood 53% and 60% levels pre-Covid-19 respectively.
In the same update, the Public Transport Council (PTC) says it will not grant any fare adjustments in this year’s Fare Review Exercise (FRE) to help commuters mitigate the impact of Covid-19.
The maximum allowance fare adjustment computed for FRE 2020 of 4.4% will be rolled over to the next FRE in 2021, it says.
Other commercial services remain slow in its recovery due to the poor economic outlook.
As at end September, total assets for SBS rose 3.8% y-o-y to $1.18 billion mainly due to the increase in short-term deposits and bank balances. This was partially offset by the depreciation of vehicles, premises and equipment.
For the same period, SBS reported that it had over $250 million of available cash and bank facilities undrawn.
Shares in SBS Transit closed flat at $2.90 on Nov 11
Shion
Senior Mentor
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- Oct 24, 2008
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- 361,896
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- 112,745
SBS Transit teams up with France's RATP Dev to bring world-class metro services to Singapore
SBS Transit teams up with France's RATP Dev to bring world-class metro services to Singapore
https://www.theedgesingapore.com/ne...eams-frances-ratp-dev-bring-world-class-metro
SBS Transit and French public transport operator RATP Dev have entered into a strategic partnership to deliver world-class metro services in Singapore.
The partnership, which brings together a combined 87 years of experience in railway operations and maintenance, will form a new jointly-owned company that’s set up to explore new business prospects in the Singapore rail industry.
The company will be helmed by a team of experienced staff, who will come from both organisations.
The company will also propose centres of excellence to reduce reliance on original equipment manufacturers and life-cycle reliability so as to strengthen the reliability of Singapore’s railway system and promote local rail engineering capabilities.
SBS’s acting CEO Cheng Siak Kian and RATP Dev CEO in APAC, the Middle-East and North Africa, Olivier Badard signed a teaming agreement to announce the partnership on Dec 14.
The signing was witnessed by France’s Minister Delegate for Foreign Trade and Economic Attractiveness Franck Riester, along with SBS Transit’s chairman Lim Jit Poh and Laurence Batlle, RATP Dev’s Chairwoman of the executive board.
“We are excited by the prospects of this partnership which will certainly help bolster the reliability of our railway system. Besides this, it will go a long way in developing our rail engineering talent. I see this as a win-win situation not just for the industry but also for our commuters,” says Lim.
“Land Transport in Singapore is a worldly acknowledged market which has set some of the highest quality standards in our industry. We are delighted to join forces with SBST and combine our longterm vision on assets and mobility with SBST’s state-of-the-art customer-centric expertise to raise the bar even higher in terms of reliability, quality and sustainability for rail,” adds Batlle.
The partnership comes six months after a similar agreement was signed between SBS Transit’s parent company, ComfortDelGro and RATP Dev, to jointly bid for Lines 16 and 17 of the Grand Paris Express greenfield metro projects.
Shares in SBS Transit closed flat at $3.10 on Dec 14.
SBS Transit teams up with France's RATP Dev to bring world-class metro services to Singapore
https://www.theedgesingapore.com/ne...eams-frances-ratp-dev-bring-world-class-metro
SBS Transit and French public transport operator RATP Dev have entered into a strategic partnership to deliver world-class metro services in Singapore.
The partnership, which brings together a combined 87 years of experience in railway operations and maintenance, will form a new jointly-owned company that’s set up to explore new business prospects in the Singapore rail industry.
The company will be helmed by a team of experienced staff, who will come from both organisations.
The company will also propose centres of excellence to reduce reliance on original equipment manufacturers and life-cycle reliability so as to strengthen the reliability of Singapore’s railway system and promote local rail engineering capabilities.
SBS’s acting CEO Cheng Siak Kian and RATP Dev CEO in APAC, the Middle-East and North Africa, Olivier Badard signed a teaming agreement to announce the partnership on Dec 14.
The signing was witnessed by France’s Minister Delegate for Foreign Trade and Economic Attractiveness Franck Riester, along with SBS Transit’s chairman Lim Jit Poh and Laurence Batlle, RATP Dev’s Chairwoman of the executive board.
“We are excited by the prospects of this partnership which will certainly help bolster the reliability of our railway system. Besides this, it will go a long way in developing our rail engineering talent. I see this as a win-win situation not just for the industry but also for our commuters,” says Lim.
“Land Transport in Singapore is a worldly acknowledged market which has set some of the highest quality standards in our industry. We are delighted to join forces with SBST and combine our longterm vision on assets and mobility with SBST’s state-of-the-art customer-centric expertise to raise the bar even higher in terms of reliability, quality and sustainability for rail,” adds Batlle.
The partnership comes six months after a similar agreement was signed between SBS Transit’s parent company, ComfortDelGro and RATP Dev, to jointly bid for Lines 16 and 17 of the Grand Paris Express greenfield metro projects.
Shares in SBS Transit closed flat at $3.10 on Dec 14.
Shion
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LTA to begin rolling out three-door double-deck buses in January
LTA to begin rolling out three-door double-deck buses in January
https://www.channelnewsasia.com/news/singapore/three-door-double-deck-buses-lta-january-13937108
SINGAPORE: The Land Transport Authority (LTA) said on Monday (Jan 11) it would begin introducing three-door double-deck buses into Singapore's public bus fleet from the end of the month.
A total of 100 of these buses will be progressively added to the fleet over the course of the year. Fifty buses from ST Engineering Land Systems (STELS) will be deployed from the end of January while the remaining buses from Alexander Dennis (Singapore) Services (ADS) will be deployed from the second quarter.
These buses have a second staircase as well as an additional exit door at the rear, features aimed at improving the flow of commuters.
"With an additional staircase, commuters boarding the bus will be able to access the upper deck via the first staircase while alighting commuters are encouraged to make their way down via the second staircase," said LTA in a media release.
The additional exit door will allow commuters at the rear of the bus to alight without having to make their way to the middle of the vehicle, it added.
The LTA said it is working with all four public transport operators here - Go-Ahead, SBS Transit, SMRT and Tower Transport - to determine the routes that the three-door buses will ply.
The buses will first operate the service 334, a feeder service operated by Tower Transit plying a 9km route between Jurong East and Jurong West.
The LTA previously said that the three-door buses were to be introduced here last year.
In response to queries from CNA, an LTA spokesperson said the delivery of these buses was affected by the disruption to global supply chains as a result of the COVID-19 pandemic.
"The situation has since improved and suppliers are able to gradually ramp up their production," said the spokesperson.
Wheelchair users will continue to board and disembark from a ramp located at the middle door of the bus, assisted by the bus driver, said LTA.
"Like all our newer buses, the three-door double-deck buses will be equipped with a passenger information display system to provide commuters with route-specific information, such as upcoming bus stops and the MRT and LRT lines near a bus stop," said the LTA.
The buses will also have on-board audio announcements of upcoming bus stops to make commuting easier for visually-impaired commuters, it added.
The buses cost a combined S$64 million.
This deployment follows trials that saw Tower Transit operating a three-door double-deck bus for about seven months in 2017 and SMRT operating a three-door single deck bus on two services between June 2017 and January 2018.
"Commuters who took these buses welcomed the additional door as it made boarding and alighting easier and faster," said LTA.
A survey of 22,000 commuters in 2016 found that 90 per cent supported having a third door on buses here.
The trial of the three-door buses showed an 8 per cent reduction in alighting time for commuters, Senior Minister of State for Transport Chee Hong Tat told reporters during a viewing of the buses at the Bulim Bus Depot on Monday.
Mr Chee also noted the 100 three-door double deck buses represent the last batch of diesel public buses to be deployed in Singapore, with future bus purchases to comprise either diesel-hybrid or fully-electric buses.
Since last year all public buses purchased have been "cleaner energy" vehicles, in line with LTA's aim of having a 100 per cent cleaner energy bus fleet by 2040.
LTA to begin rolling out three-door double-deck buses in January
https://www.channelnewsasia.com/news/singapore/three-door-double-deck-buses-lta-january-13937108
SINGAPORE: The Land Transport Authority (LTA) said on Monday (Jan 11) it would begin introducing three-door double-deck buses into Singapore's public bus fleet from the end of the month.
A total of 100 of these buses will be progressively added to the fleet over the course of the year. Fifty buses from ST Engineering Land Systems (STELS) will be deployed from the end of January while the remaining buses from Alexander Dennis (Singapore) Services (ADS) will be deployed from the second quarter.
These buses have a second staircase as well as an additional exit door at the rear, features aimed at improving the flow of commuters.
"With an additional staircase, commuters boarding the bus will be able to access the upper deck via the first staircase while alighting commuters are encouraged to make their way down via the second staircase," said LTA in a media release.
The additional exit door will allow commuters at the rear of the bus to alight without having to make their way to the middle of the vehicle, it added.
The LTA said it is working with all four public transport operators here - Go-Ahead, SBS Transit, SMRT and Tower Transport - to determine the routes that the three-door buses will ply.
The buses will first operate the service 334, a feeder service operated by Tower Transit plying a 9km route between Jurong East and Jurong West.
The LTA previously said that the three-door buses were to be introduced here last year.
In response to queries from CNA, an LTA spokesperson said the delivery of these buses was affected by the disruption to global supply chains as a result of the COVID-19 pandemic.
"The situation has since improved and suppliers are able to gradually ramp up their production," said the spokesperson.
Wheelchair users will continue to board and disembark from a ramp located at the middle door of the bus, assisted by the bus driver, said LTA.
"Like all our newer buses, the three-door double-deck buses will be equipped with a passenger information display system to provide commuters with route-specific information, such as upcoming bus stops and the MRT and LRT lines near a bus stop," said the LTA.
The buses will also have on-board audio announcements of upcoming bus stops to make commuting easier for visually-impaired commuters, it added.
The buses cost a combined S$64 million.
This deployment follows trials that saw Tower Transit operating a three-door double-deck bus for about seven months in 2017 and SMRT operating a three-door single deck bus on two services between June 2017 and January 2018.
"Commuters who took these buses welcomed the additional door as it made boarding and alighting easier and faster," said LTA.
A survey of 22,000 commuters in 2016 found that 90 per cent supported having a third door on buses here.
The trial of the three-door buses showed an 8 per cent reduction in alighting time for commuters, Senior Minister of State for Transport Chee Hong Tat told reporters during a viewing of the buses at the Bulim Bus Depot on Monday.
Mr Chee also noted the 100 three-door double deck buses represent the last batch of diesel public buses to be deployed in Singapore, with future bus purchases to comprise either diesel-hybrid or fully-electric buses.
Since last year all public buses purchased have been "cleaner energy" vehicles, in line with LTA's aim of having a 100 per cent cleaner energy bus fleet by 2040.
Shion
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- Oct 24, 2008
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SBS Transit reports FY2020 earnings of $79.0 mil, thanks to government grants of $109.8 mil
SBS Transit reports FY2020 earnings of $79.0 mil, thanks to government grants of $109.8 mil
https://www.theedgesingapore.com/ca...ngs-790-mil-thanks-government-grants-1098-mil
SBS Transit has reported earnings of $79.0 million for the FY2020 ended December, 2.9% lower than earnings of $81.3 million in FY2019.
This translates to earnings per share (EPS) of 25.32 cents for FY2020, compared to 26.07 cents in FY2019.
Operating profit stood 22.7% lower y-o-y at $80.0 million.
The group’s bottomline was supported by the government grants of some $109.8 million received during the year.
Without the grants, the group would have recorded an operating loss of $29.8 million for the FY2020.
FY2020 group revenue fell by 14.8% y-o-y to $1.23 billion.
Revenue from Public Transport Services dropped 13.6% y-o-y to $1.20 billion due mainly to lower service fees from lower fuel indexation and operated mileage. The lower revenue was also due to lower rail ridership due to Covid-19.
Revenue from Other Commercial Services declined by 43.3% y-o-y to $35.1 million due to lower advertising revenue attributable to Covid-19 where lesser rail and bus campaigns were rolled out. The lower revenue was also due to rental rebates given to tenants.
Operating profit dropped by 8.2% y-o-y to $56.9 million mainly due to lower revenue, higher repairs and maintenance costs and higher operating costs, offset by lower staff costs mainly attributable to wage subsidies received and lower fuel and electricity costs.
A first and final dividend of 6.30 cents has been proposed for 2020, compared to total dividends of 13.05 cents in 2019.
The final dividend represents 25% of the group’s earnings as a “show of [the group’s] appreciation” for their shareholders’ continued support.
As at Dec 31, 2020, cash and cash equivalents stood at $85.6 million, higher than cash and cash equivalents of $31.5 million in Dec 31, 2019.
Looking ahead, the group expects revenue from Public Transport Services to be higher compared to the year before.
Rail ridership is expected to recover gradually in Phase 3.
Revenue from Other Commercial Services is expected to improve with higher ridership.
Shares in SBS closed flat at $2.96 on Feb 9.
SBS Transit reports FY2020 earnings of $79.0 mil, thanks to government grants of $109.8 mil
https://www.theedgesingapore.com/ca...ngs-790-mil-thanks-government-grants-1098-mil
SBS Transit has reported earnings of $79.0 million for the FY2020 ended December, 2.9% lower than earnings of $81.3 million in FY2019.
This translates to earnings per share (EPS) of 25.32 cents for FY2020, compared to 26.07 cents in FY2019.
Operating profit stood 22.7% lower y-o-y at $80.0 million.
The group’s bottomline was supported by the government grants of some $109.8 million received during the year.
Without the grants, the group would have recorded an operating loss of $29.8 million for the FY2020.
FY2020 group revenue fell by 14.8% y-o-y to $1.23 billion.
Revenue from Public Transport Services dropped 13.6% y-o-y to $1.20 billion due mainly to lower service fees from lower fuel indexation and operated mileage. The lower revenue was also due to lower rail ridership due to Covid-19.
Revenue from Other Commercial Services declined by 43.3% y-o-y to $35.1 million due to lower advertising revenue attributable to Covid-19 where lesser rail and bus campaigns were rolled out. The lower revenue was also due to rental rebates given to tenants.
Operating profit dropped by 8.2% y-o-y to $56.9 million mainly due to lower revenue, higher repairs and maintenance costs and higher operating costs, offset by lower staff costs mainly attributable to wage subsidies received and lower fuel and electricity costs.
A first and final dividend of 6.30 cents has been proposed for 2020, compared to total dividends of 13.05 cents in 2019.
The final dividend represents 25% of the group’s earnings as a “show of [the group’s] appreciation” for their shareholders’ continued support.
As at Dec 31, 2020, cash and cash equivalents stood at $85.6 million, higher than cash and cash equivalents of $31.5 million in Dec 31, 2019.
Looking ahead, the group expects revenue from Public Transport Services to be higher compared to the year before.
Rail ridership is expected to recover gradually in Phase 3.
Revenue from Other Commercial Services is expected to improve with higher ridership.
Shares in SBS closed flat at $2.96 on Feb 9.
Shion
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SBS Transit an 'add'; Comfort DelGro's net profit for FY2020 expected to be $51 million: CGS-CIMB
https://www.theedgesingapore.com/ca...-net-profit-fy2020-expected-be-51-million-cgs
https://www.theedgesingapore.com/ca...-net-profit-fy2020-expected-be-51-million-cgs
Shion
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SBS Transit's Q1 profit after tax jumps to $23.3m
https://www.straitstimes.com/busine...bs-transits-q1-profit-after-tax-jumps-to-233m
SINGAPORE (THE BUSINESS TIMES) - In a business update, transport operator SBS Transit posted a profit after tax of $23.3 million for the first quarter ended March 31, 2021, more than doubling from S$11.1 million the year before.
Revenue fell 6.5 per cent to $317 million but operating profit increased 70.9 per cent to $24.9 million. Without Covid-19 government reliefs, operating profit would have fallen 52.5 per cent to $6.3 million.
Revenue from the public transport services segment was 6.5 per cent lower mainly due to lower rail ridership and lower service fees. Revenue from other commercial services was down 7.6 per cent mainly because of lower advertising revenue.
SBS Transit said it has observed a gradual pick-up of daily ridership on both the Downtown Line (DTL) and North-East Line (NEL). As at the end of March 2021, NEL and DTL's ridership was 65-70 per cent of the levels before the Covid-19 outbreak.
Operating costs fell because of wage subsidies, lower salaries and related costs, and lower repairs and maintenance costs.
The company noted that while rail ridership is improving, it is unlikely to return to pre-Covid levels as more companies are adopting work-from-home practices for their employees.
It sees a prolonged and uneven recovery ahead, barring any second wave of Covid-19 infections in Singapore. In addition, the Jobs Support Scheme that provides wage subsidies will be much reduced in 2021.
Net cash excluding finance leases as at end-March stood at $122.6 million, higher than S$60.6 million as at Dec 31.
Shion
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Ex-bus driver's lawsuit against SBS Transit for unfair work practices to be heard in High Court
https://www.channelnewsasia.com/new...rivers-lawsuit-unfair-work-practices-14985742
SINGAPORE: A judge has granted a bid by a former bus driver to have his case against SBS Transit for allegedly unfair work practices – including long work hours and unpaid overtime – heard in the High Court.
Justice Audrey Lim said in a written judgment released on Thursday (Jun 10) that the case raises important questions of law to warrant the move to the higher court from the Magistrate's Courts.
Although the case was mounted by one bus driver, Mr Chua Qwong Meng, another 12 drivers are linked to it. Mr Chua claims that about S$720,000 is involved in the allegations of all 13 suits, which include unpaid overtime fees and contentions on the maximum consecutive number of work days allowed.
The case affects not only the bus driver in the case but a larger class of employees including those in the public transport sector, said the judge.
Lawyer M Ravi represented Mr Chua and the other 12 bus drivers, while SBS Transit was represented by a team of lawyers led by Senior Counsel Davinder Singh.
Mr Chua worked for SBS Transit from April 2017 to early 2020. He commenced his suit against the company for breaches of contract and provisions of the Employment Act on Sep 20, 2019.
Four other bus drivers commenced similar proceedings in the Magistrates' Courts that same day, and another eight drivers launched their own suits subsequently.
In total, 13 bus drivers are suing SBS Transit over what the judge said are essentially the same matters pertaining to their employment.
They are: Mr Chua, Mr Lee Chye Chong, Mr Chian Poh Seng, Mr Fung Chean Seng, Mr Tan Ting Hock Robin, Mr Thiyagu Balan, Mr GAn Kim Kiam, Mr Huzainal Hussein, Mr Lim You Onn, Mr Chiew Yi Yee, Mr Meerah Mohamed Halideen, Mr Razak Hasim and Mr Mohamad Sani Din.
It was agreed on Mar 4 last year that Mr Chua's case would be heard as a test case, with the other 12 suits held in abeyance pending the determination of his case.
MR CHUA'S CLAIMS
Mr Chua claims that SBS Transit breached the Employment Act by not giving him a rest day per week. Its employment practices were also allegedly in breach of the Manpower Ministry's regulated pay rate that an employer is expected to pay for work done during a rest day.
Mr Chua also claims that he was underpaid for overtime work, and that the company did not pay him the statutorily prescribed rate for working on a rest day.
As a result, he worked in excess of the prescribed work hours in a day or week. He also claims that the company did not pay him an agreed allowance for work done on the night shift.
SBS Transit denies the claims and asserts that it has complied with contractual obligations and laws, rules or regulations on working hours, overtime pay and rest days.
It claims that it compensated Mr Chua in compliance with his employment contract, which started in 2017, as well as with the law and the Manpower Ministry's guidelines.
MR RAVI'S ARGUMENTS, AND MR DAVINDER SINGH'S
Mr Ravi argued for the case to be transferred to the High Court as it involves an important question of law and is a test case.
He said the questions of law - which include how "rest days" are interpreted and whether an employee can work for 12 consecutive days over a 14-day period - will impact not only the plaintiffs but the whole of the employment sector in Singapore.
The 13 suits amount to S$720,000, which is beyond the district court's limit, he said.
Mr Singh objected to having the case heard in the High Court, claiming abuse of court process and saying there is no important question of law.
He said there is nothing to suggest that the issues raise difficult or complex issues. The State Courts regularly deal with disputes involving the interpretation of employment agreements and the provisions of the Employment Act, he added.
He said Mr Chua has not shown credible evidence that damages in his suit would exceed S$250,000, the jurisdictional limit of the district court.
Justice Lim said an important question of law need not necessarily be a complex or difficult one, and that just because the State Courts deal with employment disputes does not mean there may not be important questions of law in the provisions of the Employment Act.
She found that the questions of law in this case are important ones which affect a larger class of employees, pointing to how 12 other drivers filed similar suits.
"The Employment Act provides for mandated rest days and limits to hours of work (among other matters) to protect the rights of employees," she said.
"The question of whether this can be 'overridden' in a case where an employee is deemed to provide essential services, which on its face may not look like a difficult question, is important as it affects a larger population of workers in general," the judge said.
The case would have potential ramifications on how such contracts are structured in terms of granting days off, computing overtime pay and determining work hours, she added.
In a statement, SBS Transit said it respects Justice Lim's decision and "will continue to vigorously contest the bus captains’ claims in the High Court".
The case will be heard at a later date.
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