SMRT

[KopiKat]

Nobody ever says dividends are guaranteed!

I thought they had a Dividend Policy of paying at least 60% of Profit after tax. Looks like either I missed the change (or scrapped) in dividend policy or even that is no guarantee - current payout is closer to 45%.

To add on to what dydx said, neither are payout ratios guaranteed!

Managed to find a recent statement of their Dividend Policy. Dated 10-Jan-13 (pg 21),

CREDIT SUISSE ASEAN CONFERENCE - PRESENTATION SLIDES

Dividend Policy

Endeavour to maintain or increase
dividend payout each year in terms
of cents per share, targeting a
minimum payout ratio of 60% of
PATMI per year for the interim and
final ordinary dividend.

Policy takes into account our long
term objective of maximising
shareholder value, the availability of
cash and retained earnings, our
expected financial performance and
projected capital expenditure and
other investment plans.


Meaning of endeavour from online dictionary,

try hard to do or achieve something

Conclusion : You guys are right, it's not a guarantee. They endeavoured (likely still endeavouring) but sorry (I didn't see them saying that tho')....

[felixleong]

SMRT incurs 4Q losses of $12 million due to higher operating costs including salary adjustments

Transport operator SMRT Corp incurred a loss of $12 million for the fourth quarter ended March 31, 2013. This compared with a profit of $13.9 million for the corresponding period last year.

Chief executive Desmond Kuek attributed the loss to significantly higher operating costs, including salary adjustments for bus drivers and higher repair and maintenance costs for its rail business.

He expects costs to continue rising.

Nevertheless, SMRT is declaring a final dividend of 1.0 cent per share. Together with an interim payment of 1.5 cents, it brings total dividend for the year to 2.5 cents.

---

dividend yield coming off, I'm quite negative on the fundamentals. But I do hope this company will recover soon, maybe in 2 years time or longer.

Not vested

[CityFarmer]

SMRT incurs 4Q losses of $12 million due to higher operating costs including salary adjustments

Transport operator SMRT Corp incurred a loss of $12 million for the fourth quarter ended March 31, 2013. This compared with a profit of $13.9 million for the corresponding period last year.

Chief executive Desmond Kuek attributed the loss to significantly higher operating costs, including salary adjustments for bus drivers and higher repair and maintenance costs for its rail business.

He expects costs to continue rising.

Nevertheless, SMRT is declaring a final dividend of 1.0 cent per share. Together with an interim payment of 1.5 cents, it brings total dividend for the year to 2.5 cents.

---

dividend yield coming off, I'm quite negative on the fundamentals. But I do hope this company will recover soon, maybe in 2 years time or longer.

Not vested

With 2.5 cents dividend, it is 1.7% dividend yield with market price of $1.50. SMRT stock as dividend stock is gone.

The market price holding well around $1.50...

(not vested)

[Dividend Warrior]

I predict further cuts in dividend next year.......

Maintenance and staff costs will increase......

[CityFarmer]

OCBC Investment Research report, rating HOLD, TP $1.51

SMRT Corporation: A loss-making
quarter to end the year
As expected, SMRT reported a loss-making
4Q13 to end the year. Although revenue
grew 2.4% YoY to S$281.3m, increases in
operating expenses namely staff (+28.5%
YoY) and repair costs (+41.6% YoY) resulted
in a net loss of S$12.1m. For FY13, SMRT
reported a 30.6% YoY decline in net profit to
S$83.2m despite a 5.9% YoY increase in
revenue to S$1,119m. SMRT also declared a
final dividend of 1 S cent (versus 5.7 S cents
last year) to bring its total dividends declared
to 2.5 S cents. Pending a results briefing with
management, we maintain our HOLD rating
on SMRT as we feel that much of the
negatives have been priced in by the street.
Nonetheless, we place our fair value estimate
of S$1.51 under review. (Lim Siyi)

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on May 01, 2013
SMRT suffers $12m loss in fourth quarter

By Christopher Tan Senior Transport Correspondent

TRANSPORT operator SMRT recorded a net loss of $12 million for the fourth quarter, compared with a profit of $13.9 million for the same period a year ago.

The Temasek-owned group's earnings shrank by 30.6 per cent for the full year to a 10-year low of $83.2 million. This was despite a 5.9 per cent rise in revenue to $1.12 billion for the 12 months to March 31.

Chief executive Desmond Kuek attributed the weaker performance to substantially higher costs, including salary adjustments for bus drivers and higher repair and maintenance expenditure for its rail network.

Repairs and maintenance costs soared by 32.7 per cent to $112.5 million for the year. There was also a $17.3 million impairment in its interest in Chinese associate Shenzhen Zona.

Its single biggest cost increase in absolute terms was in salaries, which spiked by $55 million, or 16.2 per cent, to $395.2 million.

Mr Kuek expects costs to continue rising, but offered a ray of hope: "Discussions are ongoing with the Government on more sustainable models for both the train and bus businesses.

"We are hopeful that there will be a positive outcome from the discussions."

Loss per share for the fourth quarter stood at 0.8 cent, compared to earnings per share of 0.9 cent a year earlier. Earnings per share for the year fell from 7.9 cents to 5.5 cents.

Net asset value per share for the year stood at 50.5 cents, down from 52.1 cents previously.

Net gearing as at March 31 stood at 0.08, from a net cash position. If the 17 new trains SMRT bought last month had been paid for earlier, gearing would have been 0.58.

Cash and equivalents stood at $546.3 million, up sharply from $195.3 million on the back of net financing inflow.

Trade and receivables rose by 34 per cent to $86.1 million, which SMRT attributed to payments due from the Government for the rail sleeper replacement and bus enhancement programmes.

SMRT's non-transport businesses posted an operating profit of $87.8 million for the year. It was the first time this overtook profit from its core businesses, which stood at $39.6 million.

The erosion of core operations came mainly from a 28.4 per cent drop in rail profit to $65 million and bus losses more than doubling to $30.8 million.

A doubling of taxi profit to $6.4 million failed to offset the poor showing. SMRT said it is looking at mergers and acquisitions to grow its taxi business.

Mr Kuek said the new Circle Line, with average daily ridership at 368,000, could break even if there was a fare rise, but he held no such hope for the long-suffering Bukit Panjang LRT.

Ostensibly to set aside funds for a higher capital expenditure in the 2014 financial year, when profit is expected to shrink further, SMRT is declaring a final dividend of one cent, down sharply from 5.7 cents previously.

This is not expected to go down well with investors.

Nomura researcher Chan Wen Jie said: "Both the dividends and results came in below expectations, with the breach of its stated dividend policy of 60 per cent being the biggest downside surprise."

SMRT shares are trading at a four-year low of around $1.50.

christan@sph.com.sg

[pianist]

this is the result of our higher asset higher inflation over the years.. every cost centre demands higher price , for the living, we need a higher salary to feed mouths, pay bank loans etc



SMRT Corporation has said its current business model is "unsustainable" and it is in talks with the government on "more sustainable models" for its trains and bus businesses. It reported a net loss of S$11.9 million in the fourth quarter.

SINGAPORE: SMRT Corporation has said its current business model is "unsustainable" and it is in talks with the government on "more sustainable models" for its trains and bus businesses.


The public transport operator reported a net loss of S$11.9 million in the fourth quarter ended March 2013, mainly due to higher repair and maintenance costs and higher staff costs. SMRT had achieved a net profit of S$13.9 million in the same period last year.

SMRT's operational costs in the first three months of this year rose 12.9 per cent from the same quarter last year, due to higher train and staff costs.


Meanwhile, income from the full operation of Circle Line, taxi and rental revenue is not rising fast enough.

The group's fourth-quarter revenue rose 2.4 per cent to S$281.3 million.


SMRT warned that its profitability will be further eroded in the next 12 months by the "continuing misalignment between fares and operating costs".

It said its train, light rail transit and bus businesses will incur higher staff costs, repair and maintenance costs and depreciation, driven by higher service standards, a larger fleet and an ageing rail network.


Desmond Kuek, president and chief executive officer of SMRT, said: "The operating landscape has evolved with higher operational standards and increasing demand for rail and bus services.


"Going forward, we continue to focus on improving the reliability and availability of our transport services while taking measures to improve productivity and efficiency.


"At the same time, discussions are ongoing with the government on more sustainable models for both the trains and bus businesses. These models will have an impact on the short-term profitability and improve the long-term sustainability of the businesses."


He added: "To sustain growth, we will continue to identify opportunities to expand our revenue streams by rolling out refurbishments to our commercial spaces and improve the yield in our existing network, and diversifying our media and advertising platforms."


For the full year, the company's net profit declined 30.5 per cent to S$83.3 million, while revenue increased 5.9 per cent to S$1.1 billion.

SMRT has proposed a final dividend of one cent per share. Including the interim 1.50 cents, this will bring the total dividend for the financial year to 2.50 cents. This is significantly lower than last year, when SMRT paid 7.45 cents in total dividend for the full year.

Mr Kuek said: "This dividend payout is made in cognisance that there is no certainty yet over the outcome of discussions with the government on more sustainable financial and operating models for both the trains and bus businesses."


SMRT said capital expenditure will increase next year as ageing trains, buses, taxis and equipment must be renewed and upgraded.


There may also be additional capital expenditure to expand the fleet to meet the Land Transport Authority's requirements for peak hour travel.

- CNA/ms

[Dividend Warrior]

Downward spiral.......

[Temperament]

There is something very "strange" needed to explain here.
When population was at 4 to 4.5 million SMRT seemed to be a "Pow Chiak" dividend income generating stock. (i had my fair share). i even recommended people to buy.
Now population is 5.5 to 6.0? million and SMRT is losing money. How come? The more SMRT's passengers the more SMRT's lose money. That's one of Papy's long term planing or misplaning?
And may i add, i almost forget who is the largest shareholder who benefited the most in the past. Why allow to lose money now?

[Musicwhiz]

Downward spiral.......

Perhaps you would care to share some of your insights into the business and also of your comments above? It would definitely be helpful if you could contribute to the on-going discussion on SMRT.

Thanks.