Samudera's
gross profit down 34% in H1 2001
A 23% rise in operating costs
depresses earnings
(SINGAPORE) Despite maintaining marginal volume growth
and rising revenues, Samudera Shipping Line announced
a 34 per cent drop in gross profit for the first half
of 2001 over the previous year.
The Indonesian shipping group noted in its half-year
results statement that although overall revenue had
increased by 21 per cent to S$242.3 million, operating
costs rose at a faster rate of nearly 23 per cent.
This ultimately depressed gross profit to S$8 million
from the S$12.3 million reported over the same period
last year.
Samudera put the increased operating costs down largely
to rising charter rates for the vessels it required
for new routes to Vietnam, China and the Middle East,
as well as its growing Carrier Own Container (COC) business.
Samudera's deployed capacity of its container shipping
division - which contributes 92.1 per cent of the company's
revenue and 63 per cent of its after-tax profit - increased
by nearly 20 per cent over the period to some 23,000
TEUs.
The newly established routes combined with a 35 per
cent growth in COC business over the period helped the
company maintain marginal growth in container volumes
of one per cent, while its revenues were up 17 per cent
for this sector.
The company also saw a rise in the after-tax profit
contribution from its industrial shipping business -
centred around seven chemical, two product and one cement
tankers - rising from only 7 per cent of the total in
last year's first half, to this year's figure of 35
per cent.
Looking ahead, Samudera says it will continue its geographical
diversification, which it has been pursuing since 1993.
With its Middle East and Indian sub-continent volumes
growing by nearly 25 per cent, while South-east Asian
volumes drop 10 per cent, Samudera's shifting focus
means that the former now contributes some 27 per cent
of its business, up from 22 per cent previously, while
the latter now contributes 69 per cent, down from 77
per cent. China's contribution has moved up from one
per cent to 4 per cent.
Samudera also says it is aiming, in the long run, to
strike a balance between container and industrial shipping
and will 'aggressively promote' its COC business.
By Donald Urquhart |
