Samudera revenue gain fails to offset US$1.5 million loss

SINGAPORE's Samudera Shipping Line suffered a first quarter loss of US$1.5 million after experiencing a similar loss of $1.1 million in the corresponding period last year despite a three per cent increase in this year's revenue of $82.9 million.

The company said it was cautious about the year ahead because of idle containership capacity and fresh newbuildings "continue to plague the industry" in spite of the promising sales increase.

As a result of improving global trade, said the Samudera statement, first quarter container volume grew 20.4 per cent to 334,000 TEU year on year. Most of this advance came from its NKX service, rotating between Singapore, Nhavasheva, Karachi, Pipavav, Colombo and Penang.

Other operating expenses fell to $56,000 in the first quarter from $404,000 because of an unrealised loss on investment securities last year. No such loss "was recognised" in this quarter. Other operating income increased to $792,000 from $217,000, largely due to dividend income received.

"In line with the increase in revenue, the cost of services rose six per cent to $81.1 million from $76.5 million," said the company. "This was largely due to higher bunker prices and stevedoring charges for the container shipping business. As a result, gross profit declined 54.5 per cent to $1.8 million from $4 million."

"With bunker prices expected to remain volatile, the group will continue to enter hedging contracts. At the moment, 20 per cent of bunker consumption is hedged for one to three months for the period ending in June," said the company statement.

(Source: www.schednet.com)