Samudera Shipping Line has reported FY2020 revenue of US$347.9 million, down 6.9%. However, thanks to a combination of lower operating costs, mainly fuel, it was able to report 89% y-o-y jump in earnings to US$7.2 million.

For the year ended Dec 31 2020, the shipping line based out of Indonesia handled a 7.5% jump in container volume.

From 1.2 million twenty-foot equivalent units handled back in FY2019, the company handled 1.3 million TEUs last year, thanks to a “sharp turnaround” in container shipping activity in the second half of the year.

As at Dec 31 2020, cash and bank balances stood at US$80.8 million, significantly higher than US$56.5 million as at end-FY19, due to better operating profits and lower receivables.

The company plans to pay a final dividend of 0.75 cents, and a special dividend of 0.3 cents, bringing FY2020 total to 1.05 cents. In contrast, it paid just 0.75 cents per share for FY2019.


Get the latest Singapore corporate news stories for FREE

SEE:Samudera Shipping steers out of the red in FY17


The company notes that the pandemic has “greatly disrupted” global supply chains in the first half of FY2020, causing “pent up” demand for container services in the second half of the year. 

“While freight rates have been sustained at higher levels as a result, the group is nevertheless mindful of the impact of port delays and the volatile bunker price on operating costs,” the company says.

“In addition, the rising demand for container shipping services has also led to an increase in vessel charter cost as charter hire rates begin to pick up,” says the company in its earnings commentary,” Samudera adds.

Samudera closed Feb 24 at 28 cents, down 1.75%. In March last year, it was trading at around 11 cents.