“Most of our public transport contracts are long-term, with fuel price indexation to offset global oil price volatility. In addition, we have long-established mitigation measures in place, including hedging strategies to manage fuel-related risks,” says Cheng Siak Kian, managing director and group CEO, in response to queries from The Edge Singapore.
In an almost knee-jerk reaction to the latest war in the Middle East, share prices of transport operators ranging from Singapore Airlines to ComfortDelGro (CDG) dropped.
Yet, this latest bout of volatility in oil prices is unlikely to rattle CDG, which has weathered several similar cycles over the decades. Short-term swings in energy markets are also a familiar challenge for the industry.
