Two shipping companies founded by Tommy Soeharto, PT Humpuss Intermoda Transportasi Tbk (HITS) and PT Humpuss Maritim Internasional Tbk (HUMI), have reported notable profit declines for the third quarter (Q3) of 2024. Despite still posting profits, both companies faced significant year-on-year (YoY) declines.
According to their financial reports for the period ending September 30, 2024, released on the Indonesia Stock Exchange (IDX), HUMI’s profit fell by 31.23% YoY to US$8.19 million (IDR 130.07 billion, based on an exchange rate of IDR 15,874 per US dollar).
Although HUMI’s net income increased by 24.05% YoY to US$91.64 million (IDR 1.45 trillion), the company’s rising cost of revenue, which surged 31.95% YoY to US$70.3 million (IDR 1.11 trillion), negatively impacted its profitability. Additionally, higher general and administrative expenses, along with increased financial costs, led to a 20.28% YoY decline in pre-tax profit, which fell to US$9.9 million (IDR 157.28 billion).
Similarly, HITS saw a 28.86% YoY drop in net profit, totaling US$7.89 million (IDR 125.38 billion) for Q3 2024. While the company’s net income grew by 19.65% YoY, reaching US$97.91 million (IDR 1.55 trillion), HITS also faced a sharp 26.44% YoY rise in its cost of revenue, which climbed to US$75.54 million (IDR 1.19 trillion). Like HUMI, the company was affected by higher general and administrative expenses and financial costs, which contributed to a 17.98% YoY drop in pre-tax profit, amounting to US$9.76 million (IDR 155.04 billion).
Despite these declines in profitability, the two companies have seen contrasting stock market performances. HUMI’s stock price has been on a downward trajectory, dropping by 1.75% year-to-date. As of December 2, 2024, HUMI’s share price was IDR 56 per share, marking a 6.67% decrease over the past month and a staggering 61.9% decline over the last year.
On the other hand, HITS has experienced a positive stock price movement. As of the same date, its share price rose by 0.47%, reaching IDR 428 per share. HITS has seen a 5.42% increase in the past month and a notable 20.22% rise year-to-date.
These financial results highlight the challenges facing both companies as they navigate rising operational costs and increasing expenses. The differing stock market performances, however, suggest contrasting investor sentiment and outlooks for the two shipping giants.