Singapore's SBS Transit Q3 revenue dips on lower rail ridership yr/yr

Overview

• Singapore public transport operator's Q3 revenue decreased 1.1% to S$382.1 mln

• Average daily ridership for NEL and DTL fell slightly yr/yr, rose from previous qtr

• Company completed Sengkang West Inner Loop upgrade ahead of schedule

Outlook

• SBS Transit will hand over BC802 Serangoon-Eunos bus package operations from 13 June 2027

• Company to write back $13 mln from prior Fuel Equalisation Fund provisions in FY2026

Result Drivers

• RIDERSHIP TRENDS - Average daily ridership for NEL and DTL fell slightly from a year ago but increased compared to previous qtr

• SERVICE UPGRADE - Sengkang West Inner Loop upgrade completed ahead of schedule, with full train service resuming earlier than planned

• FUEL FUND WRITE-BACK - Public Transport Council approved S$13 mln write-back from prior years’ Fuel Equalisation Fund provisions

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."

• Wall Street's median 12-month price target for SBS Transit Ltd is S$4.16, about 16.9% above its November 10 closing price of S$3.56

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)