SMRT’s net profit fell 10% to $20.1m in Q1

Loss-making train operations are the culprit.

SMRT reported that its net profit fell 10% year-on-year to $20.1m in the first quarter, on back of continued losses at its rail operations.

Its rail operations booked a loss of $3.7m in the first quarter, impacted by higher staff costs, depreciation, repairs and maintenance and other operating expenses.

Depreciation increased due mainly to the capitalisation of a larger train fleet as well as new buses and taxis.
Meanwhile, repairs and maintenance costs rose due to more trains undergoing scheduled overhaul and a more intensified maintenance regime in Train and LRT operations in view of the ageing systems. 

“The public transport operating landscape remains challenging for the Group. Operating expenses are expected to continue increasing to further strengthen performance in rail reliability, maintainability, availability, capacity and safety. Under the current financing framework, asset renewal of the ageing system and an expanded fleet will result in further increase in depreciation,” SMRT said.