SMRT posts 26 pct fall in Q2 net profit, outlook bleak

SINGAPORE Oct 28 (Reuters) - Singapore public transport operator SMRT Corp Ltd posted on Friday a 26 percent drop in second quarter net profit due to higher energy and staff costs, and said full-year earnings may fall.

SMRT's net profit in July-September was S$34.1 million ($27.3 million), down from S$45.8 million a year earlier due to higher operating expenses. Its revenue rose 6.1 percent to S$261.1 million in the second quarter.

"Looking ahead, we expect an increase in fare revenue due to higher ridership on existing lines and increased ridership due to the opening of Circle Line Stage 4 and 5. However, profitability will be impacted by higher operating costs, particularly energy cost," CEO Saw Phaik Hwa said in a statement.

SMRT, which runs most of Singapore's subway lines, will pay an interim dividend of 1.75 Singapore cents, unchanged from a year ago.

($1 = 1.248 Singapore Dollars) (Reporting by Charmian Kok; Editing by Kevin Lim)