Samudra Containership Rationalisation Hits Revenues
Diversified Singapore-based containership owners Samudra Group reports registered revenue of USD 96.9 million for the second quarter ended 30 June 2014, a 7.6% decline from USD 104.8 million in the previous corresponding quarter, which they say is in line with the Group’s rationalisation of its services and disposal of underperforming vessels. Excerpts from the report follow:
Revenue for the container shipping business fell 7.3% to USD82.0 million in 2Q14, from USD88.4 million in 2Q13 as a result of rationalization of services on Indonesia domestic routes. Container volume handled increased by 6.5% to 342,400 TEUs in 2Q14, compared to 321,500 TEUs in 2Q13 due to improvement in the regional routes.
The non-container shipping business recorded a 9.3% decline in revenue to USD14.9 million in 2Q14, compared to USD16.5 million a year ago. This took into account the smaller operating fleet following the disposal of underperforming and relatively old vessels – a chemical tanker and an oil barge unit in December 2013 and another chemical tanker in March 2014.
The Group’s cost of services fell 14.3% to USD89.3 million in 2Q14, from USD104.3 million in 2Q13, which outpaced the fall in revenue. The lower cost of services for the container shipping business was due mainly to the rationalisation of services, operating fewer vessels in Indonesia, renewal of charter hire at lower rates and lower bunker prices. The decline in cost of services for the non-container shipping business was in line with the disposal of the three non-performing vessels.
The Group registered a forex gain of USD808,000 in 2Q14, versus USD397,000 in 2Q13, as the US dollar strengthened against the SGD dollar.
Taking the above into consideration, the Group registered a profit from operations of USD5.2 million in 2Q14, versus a loss from operations of USD2.5 million in 2Q13. Net profit after taxation and minority interests was USD4.2 million, compared to a net loss of USD3.6 million in 2Q13.
Samudera is a regional Container Shipping line serving the Middle East and the Indian Sub-continent in the west, South East Asia and Indo-China at the center and the Far East to the north. This extensive network of services is run from its headquarters in Singapore, with able support from its own offices in Dubai, Mumbai, Kolkata and Chennai for the Middle East and the Indian Sub-continent operations, Bangkok, Ho Chi Minh, Klang and Jakarta for the South East Asia and Indo-China operations, and Shanghai for the Far East operations.