Samudera returns to the black in Q1
Indonesia’s regional shipping firm Samudera Shipping Line returned to the black in the first quarter ended 31 March 2014 due mainly to lower cost of services.
Net profit for the first quarter was registered at $414,000, rebounding from a loss of $4.42m in the same period of last year.
Revenue, however, dropped 10.5% year-on-year to $86.22m due to lower contribution from both its container and non-container shipping businesses.
Samudera’s cost of services declined 15.3% to $81.9m during the quarter, outpacing the revenue decrease.
“Cost of services for the container shipping business declined due largely to the rationalisation of services, lower charter hire rates, and lower stevedoring cost and port-related charges,” the company said.
It added that operating conditions for the container shipping segment are expected to remain challenging in view of the oversupply situation.
“The group has taken steps to restructure its services by downsizing its operations on non-performing routes. With the expiry of long term vessel charter-in contracts, the group will benefit from lower cost of renewal. The group will be taking the opportunity to review its fleet composition,” it said.
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