Samudera Shipping Registers Fall In Profit
News: Singapore's Samudera Shipping Line registered a 64% year-on-year (y-o-y) fall in profit after tax to US$1.4mn in the quarter ended September 30. However, in the reported period, revenue rose by 1% y-o-y to US$118.4mn, while the company registered losses from its non-core tanker and bulker businesses. Meanwhile, revenue from the company's regional container shipping business reached US$87mn in Q312, up by 3% y-o-y. This was attributed to implementation of bunker surcharges that were effective from April to July. Additionally, the company's total container volume stood at 313,000 twenty-foot equivalent units (TEUs) in Q312, compared with 317,000 TEUs in Q311. Further, operational costs for the company's liner business grew by 5% y-o-y in the reported period, owing to deployment of additional vessels and higher bunker costs.
BMI View: Samudera Shipping Line is a subsidiary of Indonesia-based Samudera Indonesia Group and is a Singapore-listed intra-Asian shipping specialist. With the trade growing, BMI believes that many more new services in the region will follow, and Samudera, with its emphasis on intra-Asian trade (complemented by some Middle Eastern and African services), will continue to report more favourable results.