SINGAPORE -- Singaporean bus and taxi operator ComfortDelGro is regaining investor interest on the stock market on Monday thanks to a second quarter profit increase announced late last week.
The stock briefly touched a high of 2.91 Singapore dollars, up S$0.05, or 1.74%, from Friday's close. The company reported its April-June earnings after the market closed on Friday.
ComfortDelGro also operates trains in Singapore and buses and taxis in the U.K.
A fall in fuel costs thanks to cheaper crude oil helped push up profit. Net profit grew 5% year on year to S$85.2 million ($63.2 million). Sales were down 1% to S$1,022.3 million.
After the U.K. voted in late June to quit the European Union, the pound weakened significantly against the Singapore dollar, hurting ComfortDelGro's U.K. sales, including its bus revenue in London.
By contrast, domestic train operations were strong, with newly opened routes lifting the number of passengers.
The company expects its steady revenue from train operations to continue for some time while bus and taxi operations are projected to change little. Some investors are buying into the stock as a company that can generate a stable revenue stream amid a slowdown in the Singaporean economy.