By Christopher Tan, Senior Correspondent

DESPITE the economic slowdown, transport operator ComfortDelGro Corp's profits have continued to grow.

And they would have grown even more if not for rising insurance and claims costs, and weakened currencies in some of the transnational group's overseas markets.

For the six months ended June 30, the Singapore-based group posted a 7 per cent rise in after-tax earnings to $138.3 million. After higher minority interests of $28.5 million, arising from higher profits generated by subsidiaries, profit attributable to shareholders was up 2.6 per cent at $109.8 million.

The growth came even though this half did not see exceptional gains like the $26.5 million posted in the previous corresponding period after a share swop with Cabcharge Australia.

Revenue dipped by 4.2 per cent to $1.47 billion, largely because of the softer Australian dollar and sterling, but the fall was offset by the overall drop in expenses.

Savings were seen in fuel and power costs, as well as road and diesel taxes. Staff costs also fell, with the help of the Government's Jobs Credit Scheme. In addition, the group paid less in benefits to its cabbies in Singapore.

The only significant cost increase came from insurance and accident claims, which rose 28.2 per cent to $53.6 million. ComfortDelGro also made less from investments.

Buses and taxis remained the group's top contributors, while an expanding ridership fuelled growth at its young rail division. The business of selling fuel to its cabbies returned to the black, posting an interim operating profit of $10 million, against a $16.2 million loss previously.

Group earnings per share rose to 5.26 cents from 5.13 cents before. The earnings before interest, taxes, depreciation and amortisation (EBITDA) margin improved significantly to 21.2 per cent, up from 16.9 per cent.

Net asset value per share rose to 78.94 cents as at June 30 from 74.65 cents as at Dec 31. Net cash swelled to $369.4 million from $253.3 million before. Cash and equivalents rose to $447.5 million from $362 million.

SBS Transit, the group's 75 per cent- owned bus and rail operator, grew net earnings by 49 per cent to $32.3 million. Lower fuel and power costs offset a temporary fare cut, which pulled revenue down by 2.6 per cent to $348.52 million.

Its cash and equivalents fell to $42.96 million from $64.13 million. It ordered 350 more buses, bringing its investment in new buses over the past three years to $586 million.

Net earnings per share rose to 10.5 cents from 7.05 cents. Its net asset value per share rose to 91 cents from 84 cents.

ComfortDelGro is paying an interim dividend of 2.63 cents per share, up from 2.6 cents last year. SBS Transit is declaring a dividend of 4.5 cents, up from 3 cents.

This article was first published in The Straits Times.