If indeed SMRT and SBS Transit get off the hook by selling buses and trains to the government at prices they are looking for and become pure operator, it would be another QE by Singapore government.
This is especially the case for innocent retailers holding on to SMRT for its yield just less than 18 months ago...
GG
(28-04-2014, 11:43 AM)greengiraffe Wrote: [ -> ]If indeed SMRT and SBS Transit get off the hook by selling buses and trains to the government at prices they are looking for and become pure operator, it would be another QE by Singapore government.
This is especially the case for innocent retailers holding on to SMRT for its yield just less than 18 months ago...
GG
This is a quick "Get out of Jail Free" card for the operators. In the end, the retailers and the general public (income tax paying) suffers.
Belg.
There is a political sentiment attached public transport. Investors naturally take a back seat in this scenario. Moving to just an operator will likely be beneficial for shareholders.
So it is basically tax-payer money goes into SMRT shareholder's pocket?
Ai yo, why complaint?
We could adopt a simple attitude/action plan:
Can not beat them, join them.
Just buy some of these share and enjoy the tax-payer/government subsidy.
Love Compassion
A Life not Reflected is a Life not Worth Living.
Logical advice. Though it is likely that government will curb profits of SMRT if that was the case.
(28-04-2014, 12:30 PM)chialc88 Wrote: [ -> ]Ai yo, why complaint?
We could adopt a simple attitude/action plan:
Can not beat them, join them.
Just buy some of these share and enjoy the tax-payer/government subsidy.
Love Compassion
A Life not Reflected is a Life not Worth Living.
(28-04-2014, 12:27 PM)GPD Wrote: [ -> ]So it is basically tax-payer money goes into SMRT shareholder's pocket?
Well, taxpayers benefited by the co-funding of SMRT shareholders, when SMRT was listed in year 2000. If sell of op assets back to LTA materialized, it is just a refunding back SMRT shareholder, as long as the transaction is fair.
(not vested)
Is the result within market expectation?
SMRT posts 25.7% fall in full-year earnings to $62 mil
SMRT has booked a net profit of $61.9 million for the full year ended on 31 March 2014.
This is a 25.7% drop from a year ago, hurt by numbers from its rail operations.
Full year revenue, however, increased by 4%, to $1.16 billion.
The transport operator said its overall fare business incurred a loss of $25 million for the year.
It saw a 2.9% increase in train ridership, but operating profit for its train operations fell sharply to $5.5 million, compared to $65 million in the previous year. This is compared to an operating profit of $32.3 million in the previous year. The drop was due to heightened ridership demands and regulatory standards.
Bus ridership meanwhile rose by 4.6% but its bus operations continued to stay in the red, with a loss of $28.4 million for the full year.
SMRT has proposed a final dividend of 1.2 cent per ordinary share.
Including the interim dividend of 1.0 cent, this takes the total dividend for the year to 2.2 cents per share.
http://www.theedgesingapore.com/the-dail...2-mil.html#
sort of, if sell-back happens, SMRT will be a more compact and lean co.!
The "much more sustainable business outlook” means a lot to investor...
SMRT says proposal for rail financing model submitted
SINGAPORE — Transport operator SMRT said it has submitted its proposal for a rail financing model to the government a month ago.
Speaking at the company’s fourth quarter results briefing today (May 2), SMRT’s CEO Desmond Kuek said it hopes the government will respond “as soon as possible”.
Mr Kuek adds that should the changes to the rail financing and bus operating models be approved, SMRT should “see a much more sustainable business outlook”.
SMRT has reported a net profit of S$16.9 million in the fourth quarter, compared to a loss of S$11.9 million in the same period a year ago.
For the full year ending March 31, 2014 SMRT booked a profit of S$61.9 million, down 25.7 per cent from a year ago. CHANNEL NEWSASIA
http://www.todayonline.com/singapore/smr...-submitted