SMRT Shares Surges on Hopes of Rail System Reform

SMRT Trains

SMRT shares surged to a day high of S$1.575 on Friday, 4th December 2015 after our transport minister Mr Khaw Boon Wan spoke about integrating the roles of the Land Transport Authority (LTA), which currently designs and builds the rail system, and the rail operators that maintain the system.

If you have been following up on discussions related to the rail reform framework, if the policy or deal goes through, the government will take over SMRT’s rail assets. This will turn SMRT into a pure operator which means that SMRT will no longer have to fund the rail CAPEX. Read More

SMRT Higher Operating Costs Continue to Erode Profits

SMRT Logo

“We are fully committed to strengthening the level of service and reliability of our public transport services and meeting the network’s higher capacity needs and operational requirements. We remain focused on our multi-year programmes to renew and upgrade the ageing rail network and will continue to pursue business growth in line with our core competencies.”

SMRT’s President and Group Chief Executive Officer, Mr Desmond Kuek

SMRT announces its 2Q FY2016 results on 27th October 2015. The group revenue increased 4.7% to $328.8 million. Operating expenses rose 7.1% to $313.6 million. The increase in operating expenses was due mainly to higher repairs and maintenance costs, staff costs, depreciation, and other operating expenses. Operating profit was $32.5 million which is 2.4% lower as compared to 2Q FY2015.

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