Shares of ComfortDelGro Corp Fell 4.2% on Tuesday Morning
Shares of Singapore-listed transport group ComfortDelGro Corp were down in the morning on Tuesday. Its shares fell 4.2% to S$0.07 to S$1.60 at 11:13 AM. Shares slightly rose S$1.61 at the midday break, down S$0.06 or 3.6%. The company’s stock remained one of the top traded counters by volume in the day, with 21.9 million shares worth S$35.8 million changing hands.
One day earlier, ComfortDelGro Corp announced that it plans to list its wholly owned subsidiary, ComfortDelGro Corp Australia on the Australian Stock Exchange. The initial public offering (IPO) will unlock the value ComfortDelGro Corp’s land transport business assets in Australia. The IPO is planned for the last quarter of 2021 according to the company.
ComfortDelGro and its Australian subsidiary
ComfortDelGro Corp Australia is the largest overseas investment destination for the Singapore-listed transport group. It invested more than S$1 billion in its Australian subsidiary to date. ComfortDelGro Corp entered the local market 16 years ago through the acquisition of a bus operator in New South Wales. Its Australian subsidiary now operates a fleet of more than 4,000 vehicles in six Australian states and territories.
Its Australian business generated revenue of S$608 million for the year ended December 31, 2020.
This month, ComfortDelGro Corp released information interesting details about its business empire. Singapore-listed transport group logged S$91 million in net profit for six months ended June 2021, reversing an S$ million loss in the year-ago period.
ComfortDelGro Corp declared an interim dividend of 2.1 Singapore cents. Earnings per share stood at 4.2 Singapore cents according to the company.
Its revenue for the period rose 13.6% to S$1.74 billion, partly boosted by a foreign exchange gain, the group said on Friday. Out of S$1.74 billion, S$150.9 million came from underlying businesses. Also, S$57.9 million came from a positive translation effect of the stronger Australian dollar and British pound.
Revenue from ComfortDelGro Corp’s public transport services business, including bus and rail, grew 11.3% to S$11.4 billion. Revenue from its taxi business jumped grew 26.5% to S$255.9 million.
ComfortDelGro Corp looked at various ways to reduce costs and continues to review its business model. Still, it expects slow as well as uneven recovery in ridership, and changes to commuting patterns, technological disruptions, and competition.
