SBS Transit profit rises 35.5% as provision write-back offsets revenue decline

A S$13 million provision write-back helped SBS Transit lift third-quarter net profit by 35.5 per cent to S$19.6 million, despite weaker revenue. Profit for the comparable quarter was S$14.5 million, the Singapore transport operator said on Nov 11.

The adjustment reversed provisions for the Fuel Equalisation Fund accumulated in earlier years. SBS Transit said approval from the Public Transport Council covered financial year 2026. The amount formed part of operating profit, which increased 37.7 per cent to S$22.6 million against S$16.4 million previously.

Revenue totalled S$382.1 million for the quarter ending Sep 30, a decline of 1.1 per cent from S$386.5 million. The company mainly attributed the drop to reduced bus service fees following its loss of the PT207 Tampines package, together with weaker rail ridership and lower grants.

Exiting that package also cut staffing, repair and maintenance expenses. Operating costs consequently declined 2.8 per cent, reaching S$359.5 million compared with S$370 million. Costlier diesel and electricity amid the Iran conflict partly counteracted those savings.

For the nine-month period ending Sep 30, SBS Transit recorded S$48.9 million in net profit, an increase of 7.5 per cent against S$45.5 million previously. Revenue advanced 3.1 per cent, reaching S$1.2 billion versus S$1.1 billion. Operating profit was S$56.6 million, up 12 per cent from S$50.6 million.

In an operational update, SBS Transit said full services returned to the Sengkang West Inner Loop on Oct 4. Upgrading work finished two weeks ahead of schedule. The operator will also transfer its BC802 Serangoon-Eunos bus package operations from Jun 13, 2027, after the tender result announced on Jul 16.