SMRT Corporation Reports 10% Decline In 1Q16 Earnings

SMRT Corporation saw its earnings for the quarter ended 30 June 2015 drop 10 percent to $20.1 million. Higher repairs and maintenance costs as well as recognition of costs associated with Kallang Wave mall negated a 7.8 percent rise in revenue.

More trains underwent scheduled overhaul and a more intensified maintenance regime in train and LRT operations in view of the ageing systems was in place, pushing repairs and maintenance costs higher.

Going forward, SMRT expects bus operations to improve compared to FY15. Meanwhile, the company will continue to participate in the tenders under the government’s new bus contracting model and is making progress in its discussions with the authorities on the transition to a new rail financing framework.

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