LTA fines SMRT S$2M for service disruptions

How much could this hurt SMRT's books?

the Land Transport Authority (LTA) imposed the maximum fines of S$1m per incident on SMRT for the two service disruptions on the North-South Line last December.

According to OCBC Investment Research, the resulting fine of S$2m will most likely hit SMRT's books in the following quarter (2QFY13).

"With this fine and conclusion of both the COI and Ministerial Statement, negative headlines for SMRT
should come to some form of closure and we do not expect any further downward pressure on the counter., said OCBC.

Going forward, OCBC said that SMRT's main catalyst will be on the progress of its S$900m upgrading and renewal plan and how the cost burden will be shared between SMRT and LTA.