Brief take on SMRT and Riverstone Financial reports

It is the start of the work week. So typically it gets a bit of getting use to (esp. after  the long weekend). I am happy to say that I’ve spent a great long weekend with my family – esp. with my son. As a working parent there is always this guilt “burden” of not spending enough time with the child. Event wise: Nothing great, just spent lots of time with him doing simple things like playing with lego, bringing him out on a river taxi tour, sharing an ice cream, reading to him etc.

Only had time to quickly look through the reports of SMRT and Riverstone. I have also noticed NeraTel’s 1st quarter results, which was not good (read here), and at one point was salivating at the grant of contingent share awards to CapitaLand President & Group CEO, Mr Lim Ming Yan (read here).

1) SMRT – glanced through the FY2015 Financial Results. (read here)

In general, it is positive, with good % change in revenue operating profit, PATMI, EBITDA and most importantly EPS.

On the downside, net gearing has increased from a year ago.

Fare Business recorded a profit of $3.1 million for FY2015, an improvement from an operating loss of $25.0 million in FY2014 due mainly to better performance in the Bus operations.

Non-Fare Business recorded a higher profit of $115.2 million for FY2015 due largely to an increase in profit for Rental and Taxi.

Outlook – FY2016: Challenges include:

• Increased OPEX for enlarged fleet of trains, network expansion with Tuas West Extension commencing operations in FY2017 and intensified R&M for ageing rail system.
• Higher headcount to meet tightened regulatory standards and heightened operational demands on service, reliability and capacity.
• Additional investments for acquisition of new operating assets, asset renewal and life cycle upgrades.

 

2) RIVERSTONE HOLDINGS LIMITED – glanced through the 1st quarter results. (read here and here)

A set of very impressive results! Could be the fastest growing company in my portfolio at the moment. A whooping 68.9% increase in EPS.

Importantly, Cash flows from operating activities has increased from RM 19,951,000 a year ago to RM 32,879,000.