SMRT Financial Results FY2012

SMRT released its financial results today for the financial year 1 April 2011 to 31 March 2012 (FY2012).

Key Performance Numbers

Revenue $1,057.2 million (previously $969.7 million, up 9.0%)
Operating expenses $930 million (previously $794 million, up17.2%)
Net Profit $119.9 million  (previously $161.1 million, down 25.6%)
ROE   15.1% (previously 20.5%, drop 5.4% points)
EPS    7.9 cents (previously 10.6 cents, down 25.6%)
Total dividend per share for FY2012, 7.45 cents (94.3% of EPS)
Total dividend for FY 2011 was 8.5 cents (80% of EPS)
Dividend yield 4.43% (FY2011 was 4.4%)

Net assets per share 52.1 cents (previously 52.6 cents, down 0.5 cents)
Share price at 30 April 2012 was $1.68 (Price at 29 April 2011 was $1.90)
Cash and cash equivalents $195 million (previously $376 million, down 48.1%)

Total revenue increased 9.0% to $1,057.2 million due mainly to higher MRT and Bus ridership, contribution from Circle Line, higher taxi rental revenue, increase in external fleet maintenance revenue and higher rental and advertising revenue. (Source: SMRT press release)

However net profit after tax decreased significantly by 25.6% to $119.9 million due mainly to higher energy costs, staff and related costs, repair and maintenance costs on train operation and impairment of goodwill on bus operation. On an overall basis, operating expenses increased 17.2% to $930 million.

As a result, Return on Equity (ROE) was lower at 15.1% and Earnings per share (EPS) was lower at 7.9 cents.

The Board proposed a lower total dividend compared to previous year at 7.45 cents. This works out to 94.3 per cent of earnings per share. The dividend yield was 4.43% based on the last traded price as of today (30 Apr). The dividend yield is still high because the share price of SMRT had taken a tumble since the major disruption of its MRT line in December 2011. As a comparison, share price declined 11.5% since April of 2011 from $1.90 to $1.68.

Net Asset per share declined 0.5 cents to 52.1 cents. Cash and cash equivalents was down 48.1% to $195 million. The drop is due mainly to higher purchase of property, plant and equipment ($128 million) and repayment of financial liability ($100 million).

On a whole, it was a dismal performance compared to FY2011. The outlook for the next one year (FY2013) was not promising according to SMRT.

“In 1Q FY2013 and the next 12 months, the profitability for the Group will be impacted by higher repairs and maintenance, energy, and staff and related costs. Staff and related costs will increase due mainly to higher headcounts, particularly in Train and Bus operations, salary adjustments and higher CPF rates.”

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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3 Responses to SMRT Financial Results FY2012

  1. Darren says:

    Hi Sir, I am a investment student and I want to know, how do you know when the release dates of the annual reports? I’ve checked the annual reports listed on the SGX and I don’t see the annual reoprt for 2011/2012 uploaded. Please help!

    • limkimtong says:

      Hi,

      I have checked SGX website and SMRT website and too do not know when SMRT is going to release its latest annual report FY2012. Normally I do not wait for all annual reports. They will be sent to my home if I am a shareholder. You may want to email SMRT to ask for specific date when it will be releasing its annual report on their homepage.

      • Darren says:

        Okay, I just realised that your post is on the financial results, I thought it was the annual report of SMRT. Sorry for the confusion

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