Samudera 2011 profit grows 33.8pc to US$12.6 million

2012 03 01


SINGAPORE-listed container carrier Samudera Shipping Line (SSL) has announced its 2011 full-year results, seeing a profit growth of 33.8 per cent to US$12.6 million from $9.4 million a year ago.

The carrier said in a statement that the growth was mainly contributed by successful expansion of the Indonesia domestic container business with an addition of three new vessels.

Besides, its bulk and tanker businesses also experienced an expansion in operating capacity.

CEO David Batubara said: "We foresee a number of challenges in front of us in 2012, as a result of the oversupply situation in the regional container shipping business, continued pressure on freight rates and the hike in bunker prices.

"Thankfully, 2011 saw a good performance in our Indonesia domestic container shipping business as well as our bulk and tanker segment, which helps in mitigating the lacklustre results in our regional container shipping business."

SSL said the overcapacity in key markets continue to exert pressure on freight rates. Also, it warned the ailing Eurozone and an expected slowdown in China's GDP growth could reduce the intra-Asia trade activities.

Additionally, it said charter rates for dry bulk carriers are expected to soften, "as new vessel deliveries in 2012 will likely lead to a lag in demand over vessel supply."

As a specialist carrier in Indonesia trade, it said although the demand on this trade remains "relatively healthy", worsening port congestion, increasing operating cost and newbuilding deliveries are all the negative factors for operations this year.

In response to the challenges ahead, the carrier said it "will prioritise to maximise its fleet utilisation, intensify its cost efficiency measures and exercise prudent cash management, to ensure sustainability of its operations."

Source Shipping Gazette - Daily Shipping News
 

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