SMRT ordered to replace flawed third rail parts

Goodbye to power supplying rail parts with visible hairline cracks, but how much will these unexpected replacements cost SMRT?

This expense is expected to cause a slight uptick in this year’s capital expenditure. Although SMRT services and its operational cash flows have traditionally remained in demand and resilient.

Here's more from OCBC Investment Research:

Following a directive issued by LTA, SMRT will begin replacing, with immediate effect, the power supplying third rail at locations where hairline cracks on some parts of the third rail joints are more visible. The cost for these replacements have not been accounted for by management’s estimates this year, and it is expect to cause a slight uptick in this year’s capital expenditure with the increase coming from an acceleration of costs from later years.

Despite the latest development and ongoing COI hearings, SMRT’s share price has managed to hold steady and even outperformed against a backdrop of broad-market declines.

At this juncture, the possibility of further sharp sell-offs is deemed to be remote as SMRT services and its operational cash flows remain in demand and resilient.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia