SSL - Masnet Announcement

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

Statement of Changes in Equity for the third quarter ended 30 September

GROUP 3Q 2003	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2003	45,768	53,432	504	267	6,860	92,641	199,472
Currency translation	-	-	-	-	(1,629)	-	(1,629)
Net profit for the period	-	-	-	-	-	2,193	2,193
Balance as at 30 Sept 2003	45,768	53,432	504	267	5,231	94,834	200,036

GROUP 3Q 2002	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2002	45,768	53,432	504	267	7,349	74,095	181,415
Currency translation	-	-	-	-	360	-	360
Net profit for the period	-	-	-	-	-	7,007	7,007
Balance as at 30 Sept 2002	45,768	53,432	504	267	7,709	81,102	188,782

COMPANY 3Q 2003		Share capital	Share premium	Share redemption reserve	Translation reserve	Accumulated profits	TOTAL
		S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2003		45,768	53,432	504	23	65,720	165,447
Currency translation		-	-	-	(8)	-	(8)
Net profit for the period		-	-	-	-	545	545
Balance as at 30 Sept 2003		45,768	53,432	504	15	66,265	165,984

COMPANY 3Q 2002			Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
			S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2002			45,768	53,432	504	57,369	157,073
Net profit for the period			-	-	-	2,857	2,857
Balance as at 30 Sept 2002			45,768	53,432	504	60,226	159,930

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

During the third quarter ended 30 September 2003, there was no change in the Company's share capital (2002: 457,675,000 ordinary shares).

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The figures have not been audited or reviewed by the auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

The Group has applied the same accounting policies and methods of computation in the financial statements of the current financial reporting period as in the latest annual audited financial statements.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

Please refer to item 4.

6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

	Group Figures
	3rd Quarter of 2003	3rd Quarter of 2002
Earnings per ordinary share for the three months based on net profit attributable to shareholders:
(i) Based on weighted average number of ordinary shares in issue (cents)	0.48	1.53
(ii) On a fully diluted basis (cents)	0.48	1.53

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

	Group		Company
	30 Sept 2003	31 Dec 2002	30 Sept 2003	31 Dec 2002
Net asset value backing per ordinary share based on issued share capital as at the end of the period	44.04	42.18	36.27	35.56

Net asset value backing per ordinary share is derived by the total assets less total liabilities divided by the total number of ordinary shares issued at the end of the period.

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

The Group's revenue increased by 13% compared to Q3 2002, is due mainly to the increase in container volume, freight rate restoration, the deployment of additional 7 ships by Industrial Shipping during the year and the establishment of Silkargo LLC, a subsidiary in Dubai.

Notwithstanding 13% increase in the revenue, lower administration expenses and the positive impact of the write back of bad debt, the net profit of the Group decreased which was due mainly to:

(a)	an increase in the cost of services in the Container Shipping by 13.0% as compared to 3Q 2002 : charter hire expenses increased by more than 20%, which was due mainly to increase in the number of vessels and charter hire rate, PSA has terminated its one-time anniversary rebates effective from 1 July 2003 and the deployment of additional 3 vessels in middle east.
(b)	The start-up of 2 additional services (Yemen and North Vietnam services) which are not operating yet to the optimum level.
(c)	Increase in finance expenses which was due mainly to increase in foreign exchange loss from $0.2m (gain) to $0.6m (loss) despite a decrease in interest on borrowings from $1.1m to $0.9m.
(d)	A one-off gain of $2.7m from disposal of associated company in Q3 2002.

Deferred charges of the Group increased from $2.5m to $7.6m as certain vessels were sent for docking in the year of 2003. The costs of docking were deferred and amortised over a period of 30 months or until the next docking whichever is earlier.

The amount due from the subsidiaries (non-trade) in the Company increase from $2.1m to $9.3m due mainly to advance payments, a substantial portion of which would be converted into investment.

With regard to the investments in securities, following the announcement on 04 Aug 2003 via masnet (announcement no. 78), the Company has made additional investment by $0.6m.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

Not applicable.

10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

Container Shipping
Container Shipping will continue to face a challenging business environment as charter hire rate has been increasing mainly since mid of 2003 and bunker price remains uncertain.

The Company plans to run additional service (Indonesia - Philippines - China), whereby during the startup, the utilization of the vessels space is expected not to be optimum as yet.

The commencement of operation of the subsidiary in India, Samudera Shipping Line (India) Private Limited will strengthen the Company's position, in term of control and operation in India.

The Company, together with other industry players, made announcement on freight rate restoration in July and August 2003 for its services using Singapore as the hub. Full impact of this can be seen from the Q4 of 2003 onwards. For its other services, the Company expects to implement freight rate restoration in Q4 2003.

The above rate restoration scheme is expected to have a favourable impact to the financial performance of the Group in future periods.

Industrial Shipping
The new chemical tanker acquired in August 2003 and 3 units of coal carriers that are currently under construction and due for delivery in Q4 2003, are expected to show positive performance for the Group. An additional chemical tanker which is currently under construction in Japan is expected to be delivered and operational in the second half of 2004.

Logistics and Others
The operation of a new subsidiary in Dubai, SILKargo L.L.C and the joint ventures in other places will provide a stronger network for the Group's expansion and development of Logistics and other businesses.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on?

None

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year?

None

(c) Date payable

Not applicable.

(d) Books closure date

Not applicable.

12. If no dividend has been declared/recommended, a statement to that effect

No interim dividend has been declared for the period ended 30 September 2003.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

Not applicable.

14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

Not applicable.

15. A breakdown of sales

Not applicable.

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference	0	0
Total:

17. Interested Person Transactions

The aggregate value of the interested person transactions conducted pursuant to the shareholders' mandate obtained in accordance with Chapter 9 of the SGX-ST 's listing manual were as follows:

Name of Interested Person	Aggregate value of all interested person transactions during the financial year under review		Aggregate value of all interested person transactions conducted under a a shareholders' mandate pursuant to Rule 920 of the SGX Listing manual
	3rd Qtr of 2003	3rd Qtr of 2002	3rd Qtr of 2003	3rd Qtr of 2002
Provision of services (by Holding Company
Management fee	-	-	174,150	174,150
Agency commission	-	-	1,150,397	931,995
Provision of services (by Related Companies)
Management fees	-	-	12,360	12,360
Charter hire	-	-	-	435,262
Ship Management fees	-	-	300,541	265,328

BY ORDER OF THE BOARD

Anwarsyah
Executive Director
30/10/2003