PT Samudera Indonesia Tbk (SMDR) is optimistic to book revenue of USD500 million for the whole year of 2021 as the financial performance until July has shown a very satisfying growth, thanks to high growth volume and a very good freight rate in oceangoing trade during the period.
This public listed company and Indonesia’s leading shipping line is also very optimistic to enjoy higher year-on-year profit growth, following its achievement in keeping a better operating margin through appropriate strategy in creating operational efficiency, in addition to higher income from good freight rate that predictably to stay high until the end of the year.
In the first half of this year (H1/2021), the company enjoyed positive growth both in revenues and profit, compared to the same period last year. Even, there is an indication that the second half will be better, proved by the high growth in July.
Samudera, in a recent virtual public exposes, (Monday, August 30, 2021) reported that in H1/2021, this company booked revenue of USD274.1 million, increasing 11% year on year, from USD247.6 million in H1/2020. Its operating profit during the semester reached USD41.0 million, a 191% increase from USD14.1 million in H1/2020. Its net profit grew higher, by 359%, from USD5.2 million to USD23.6 million.
Meanwhile, as of July, the company’s revenue, operating profit, and net profit grew higher, thanks to the very high contribution of the single month of July. Samudera reported that as of July, its revenues reached USD325.5 million, 14% higher year-on-year, from USD 285.4 million in the same period last year.
Samudera’s operating profit until July 2021 reached USD55 million, a 247% increase from USD15.8 million in the same period last year. Meanwhile, net profit increased rapidly by 602% from USD 4.7 million to USD 32.9 million. Similarly, EBITDA increased by 160% from the previous USD 30.4 million to USD 79.1 million.
“Seeing this achievement, we are optimistic to reach revenue of USD 500 million for the whole year of 2021. Of course, this will have a positive impact on the company’s profitability,” said Bani Maulana Mulia, Samudera Indonesia President Director.
Last year (2020), Samudera Indonesia booked revenue of USD490.84 million, a 12% increase from 2019.
Bani underlined that around 75% of the revenue and 80% of the net profit were contributed by container shipping. He also noted that such revenue and profit were all originated from the business operation, not including gains from asset (vessels) sale.
“But gains from old ship sales also create profit on average,” he noted.
Investment and Development Plan
Bani also said that the company has ordered two 1,900 TEU new generation containerships. In the future, Samudera Indonesia is negotiating an order for up to 6 vessels with a size of 1,900 – 2,800TEU with an investment value of USD 40-50 million / vessel. It is expected that this order can be completed from Q4/2022 to Q1/2024.
In addition, Samudera Indonesia is waiting for the Post Panamax Bulk Carrier with a size of 91,000 DWT with an investment value of around USD 13-14 million, which is planned to be in the process of delivery and will be effective in the first week of September 2021.
Another tender process that is being followed by Samudera Indonesia is the procurement of two units of LPG Tanker vessels. This ship will be built new with the Midsize LPG Carrier type 22,000 CBM with an investment value of USD 60 million per ship. The ship is planned to enter service in December 2023.
Currently, Samudera Indonesia is also negotiating plans to add three chemical tankers with a size of 9,000-19,000 DWT with an investment value of USD 10-12 million per vessel. The target is to start operating in Q4/2021 to Q1/2022.
Therefore, Samudera Indonesia is pursuing several new long-term contracts that contribute positively to the company’s profit.
Seeing the increasing demand and efforts to add the new fleet, Bani is optimistic that Samudera Indonesia’s revenue can reach USD 500 million in 2021.