SMRT profits plunge 67.9% to $26m in 2017 amidst higher repair costs

Preparing for the operations of Tuas West Extension also raised operating expenses.

The profits after tax of rail operator SMRT Corp. plunged by a massive 67.9% YoY from $81m to $26m in 2017 as the company bears higher operating costs from daily repair and maintenance works.

Operating expenses hit $785m as the company shelled out money for the upcoming operation of Tuas West Extension as well as ongoing maintenance for the train’s ageing network.

Total revenue also dipped from $811m to $791m over the same period as the rail operator dealt with lower average fares. Total passenger-kilometers also contracted from $8.32b to $8.27b.

As ridership rose to 768m last year, SMRT is targeting the implementation of the new communication-based train control track signaling system in the near future. Works on the North and South Line have already been completed and the East-West Line is scheduled to be completed next year.

“The signalling system will allow trains to be run closer together, increasing capacity by up to 20% as a result of higher train frequency, whilst enhancing train reliability,” SMRT said in its group review.