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Samudera Shipping Line, the regional container shipping line, has reported a turnaround in net profit of US$6.3 million ($8.2 million) or 1.16 US cents per share for the three months ended 30 September 2010 (3Q10), compared to a net loss of US$4.0 million or loss of 0.74 US cents per share in 2009 (3Q09).
The group’s revenue for 3Q10 rose 14.2% to US$97.2 million from US$85.1 million a year ago.
For the nine months ended 30 September 2010 (9M10), the group registered a net profit of US$5.5 million on a 9.1% increase in revenue to US$270.1 million, compared to a net loss of US$4.9 million and revenue of US$247.5 million in the previous corresponding period (9M09).
The quarterly growth was largely due to better vessel utilisation and improved freight rates for the group’s container shipping business. Accordingly, gross profit increased 13 times to US$12.0 million in 3Q10, from US$0.9 million in 3Q09.
The group expects world trade to grow, and as such, global container demand to register overall increased activity in 2010. However, with nagging supply issues such as newbuildings on order and idle containership capacity, the container market continues to be in a delicate position.
As the peak season draws to a close, Samudera is also anticipating a softening in shipping demand and freight rates in the near term. This decline should be limited however, as shipping lines are now more disciplined in controlling supply capacity, following the shipping crisis in 2009.
Two Supramax bulk carriers with a carrying capacity of 57,700 dwt each will be delivered in the first half of 2011. Upon delivery, Samudera plans to deploy these vessels on time- charter contracts. These vessels are expected to start contributing to the group from the second quarter of 2011.
In line with the group’s continued effort to participate in the Indonesian shipping market, Samudera re-flagged another chemical tanker, Sinar Jogya into an Indonesia-flagged vessel, and secured for the latter, a two-year extension of its existing time-charter contract.
