Indonesia’s public listed shipping company PT Logindo Samudramakmur Tbk (LEAD) is eyeing a 10-15% revenue increase this year (2020) in view of more promising oil and gas market growth.
The volume of oil and gas seems to increase indicated by the increasing demand in oil and gas tanker, said Logindo Corporate Secretary Adrianus Iskandar.
He said the increasing exploration of some oil and gas companies have encouraged a positive sentiment to transporters, including shipping line. “We expect for a 10 to 15% revenue increase this year,” said Adrianus as quoted by Kontan.
In 2019, this company’s revenue reached US$ 26 million.
Though there is a target increase in revenue, but Adrianus admitted that the company has no plan for business expansion. It will focus to optimize the utilization of existing fleets.
“We don’t have any expansion plan yet, but we will optimize the utilization of existing fleets,” Adrianus said. Logindo is now operating as many as 44 fleets in total.
Logindo is targeting to increase its utilization to the level of 75%, from more than 70% last year. In addition, this company will optimize the contract of vessels with higher contract price. “One of our challenges is how to get contract for vessels with bigger horse power,” said Adrianus.
In addition to increase income to help the cash flow, Logindo will do efficiency by cutting cost as possible as it can. Adrianus noted than Logindo will not allocate capital expenditure (capex) for expansion. But, this company will prepare as much as US$ 2 million to finance docking of 15 vessels.
This is almost equivalent with capex of US$ 2.5 million last year. “In conclusion, optimizing utilization of existing fleets and cost cut are our key strategies for this year,” Adrianus said.