Samudera Reports Indonesia Route Revenues Rise Q3 2012
Samudra's revenue for the third quarter ended 30, September 2012 increased 1% compared to the same quarter last year.
Samudera is a regional 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,
The revenue increase reflects higher contribution from the regional container shipping and Indonesia domestic container shipping segments, despite a drop in revenue for the bulk and tanker business.
Revenue from the regional container shipping business recorded a 3% improvement to US$87.0 million, on the back of bunker surcharges collection which was implemented from end of April to July 2012. Total container volume handled for this segment was relatively flat at 313,000 TEUs, compared to 317,000 TEUs in 3Q11.
The Indonesia domestic container shipping business recorded a 9% increase in revenue to US$15.5 million as total container volume handled rose 12% to 41,000 TEUs, from 36,000 TEUs in 3Q11. However, revenue from the bulk and tanker business on the other hand, fell 14%, from US$17.2 million in 3Q11 to US$14.9 million in 3Q12 as a result of a drop in charter rates in the market and fleet reduction following the disposal of three bulk carriers between June and July 2012.
Industry outlook remains cloudy for the rest of 2012, as sluggishness in the world’s major economies continue to hamper the recovery of global trade activity. The Group’s Indonesia domestic container shipping segment should continue to experience healthy demand, in view of a resilient Indonesian economy. On the flip side, it will continue to face the challenges of port congestion and the change in fuel price policy as implemented in the country.
Despite the softening of charter hire rates which is likely to put a cap on its profit level, the Group's bulk and tanker business should continue to contribute positively to its performance as its fleet is fully employed. In