HIGH oil prices as well as forex translation losses pull down ComfortDelGro Corp's earnings for the year ended Dec 31.
The Singapore-listed transport giant posted a net profit of $200.1 million after tax but before minorities. This was 10.3 per cent lower than in 2007.
The group also had the benefit of an exceptonal gain of $26.5 million, from a share swop it had with Cabcharge Australia last year. It also incurred $10.1 million less in corporate taxes, mainly on tax cuts in China and the UK.
ComfortDelGro's revenue grew 3.6 per cent to $3.13 billion, with growth across all its core businesses. Operating profit shrank by 17.3 per cent to $278 million.
Excluding a forex translation loss of $7.1 million (mainly because of the depreciated sterling pound and Australian dollar); $68.9 million increase in fuel and power expenses; and $10.6 million in losses incurred in its diesel sale business, ComfortDelGro's operating profit would have been 8.4 per cent higher at $364.6 million.
The group's net earnings per ordinary share fell from 10.73 cents to 9.59 cents. Its net asset value per share was 74.65 cents as at Dec 31, 2008 - from 71.11 cents in the preceding year.
During the year, the group which has businesses in Singapore, Australia, China, the UK, Malaysia and Vietnam, generated a cashflow of $574 million, from $643 million in 2007. It ended the year with a net cash position of $76 million, against a net debt of $14.4 million previously.
Overseas contributions now account for 47 per cent of operating profit, up from 45 per cent in 2007 and 26 per cent in 2004. As at end-2008, ComfortDelGro has invested close to $1 billion overseas.
Its Singapore bus division SBS Transit posted an 18.9 per cent drop in net earnings to $40.6 million, despite an 8.9 per cent rise in revenue.
Higher fuel and energy costs as well as higher staff costs eroded profit.
The group will save $35 million from the various measures announced at this year's Budget, but part of it will go towards lowering fares this year.
SBS Transit is declaring a final dividend of 3.6 cents, up from 3.25 cents previously, while ComfortDelGro is paying a final dividend of 2.4 cents, down from 2.6 cents.
