Samudera Shipping's profits rise to US$9.4 million in 2010

SAMUDERA Shipping is back in the black with a net profit of US$9.4 million for the full year ending December 31, up from a net loss of $8.8 million in 2009.


Group revenue amounted to $369.1 million in 2010, an increase of 12 per cent compared to the previous year.


Executive director and CEO David Batubara attributed the result to "an improvement in trade activity and freight rates, as well as corporate restructuring efforts that were initiated in the middle of the year."


A statement from the carrier said growth in the container shipping business was largely due to greater container volumes handled and higher freight rates.


A report by Alphaliner said its container shipping segment, which accounted for 84 per cent of total turnover, experienced 13 per cent growth in revenue last year after liftings were up five per cent compared to the previous year to 1.32 million TEU. Revenue increased eight per cent to $235 per TEU.


Looking ahead, the group said it is seeing an improvement in trade activity in major east-west trade lanes, with demand growth expected to be driven by Asian markets. "However, against this backdrop, capacity growth remains unpredictable, which may work to offset growing demand. As such, the group is of the opinion that container trade dynamics remain in a fluid position," it said.


The company took delivery of the 1,054-TEU Sinar Bintan in January 2011, which it is now deployed on the Chittagong-Express service (CGX).


The shipping line "continues to be on the lookout to acquire more container vessels for its regional and inter-island container shipping business. In addition, in view of the implementation of the cabotage law for off-shore business activities in Indonesia in 2011, the group is actively exploring opportunities in off-shore support services," the statement said.
(Source:http://www.schednet.com)