Samudera profit falls 22pc to US$8.3 million as sales rise 9.8pc
INDONESIA's Samudera Shipping's net profit fell 21
INDONESIA's Samudera Shipping's net profit fell 21.5 per cent year on year to US$8.3 million in 2018, drawn on revenues of US$422.3 million, which increased 9.8 per cent.
Profits were dragged down by higher costs of sales and expenses despite increased revenues, the company said.
Container volume handled rose 13.7 per cent to 1.47 million TEU during the year, which raised container shipping revenue by 11.2 per cent to $390.9 million.
Bulk and tanker revenue, however, shrank 17.8 per cent to $22.1 million as a result of a smaller tanker fleet.
Container shipping and agency and logistics revenue from Indonesia rose 13.6 per cent, or $13.3 million, to $111 million. In south east Asia excluding Indonesia, revenue from the same segment grew 7.5 per cent to $183.7 million, while in the Middle East and the Indian sub-continent it increased 17.1 per cent to $83.5 million.
Samudera said that the outlook on the regional container shipping industry for 2019 is uncertain, with US-China trade friction potentially adding complications to the operating environment.
Concerns about a China slowdown have also weighed on the prospects in the dry bulk sector, and charter rates for bulk carriers have softened since the start of 2019.
The November 2018 arrest of Samudera's Sinar Kapuas dry-bulk vessel in Honduras could have a negative $1.7 million impact on 2019 financials on the basis of the vessel being released on March 15, 2019, the company said.
The company and its insurer are in the process of trying to get the vessel released in March 2019, although the process is taking longer than expected, Samudera said.