SINGAPORE (July 26): Samudera Shipping reported a 7.9% rise in 2Q17 earnings to US$2.0 million ($2.7 million) from US$1.8 million a year ago.
Revenue in 2Q increased 7.4% increase to US$71.2 million for 2Q17, from US$66.3 million in the corresponding quarter in 2Q16. The improvement came mainly on the back of higher revenue contribution from its container shipping business segment.
Driven mainly by the increase in container volume handled from 298,100 TEUs in 2Q16 to 306,700 TEUs in 2Q17, container shipping revenue rose 9.9% to US$62.5 million, versus US$56.9 million in 2Q16.
Revenue from the bulk & tanker business declined 10.6% to US$7.3 million in 2Q17, from US$8.1 million in 2Q16, on the back of a smaller tanker fleet year-on-year. The decline was partially mitigated by an improvement in vessel employment days and charter rates of the group’s bulk carriers.
In line with the rise in bunker prices and the level of business activity, cost of services rose 7.6% to US$66 million in 2Q17 from US$61.3 million in 2Q16.
Share of results from associate company/joint venture declined to US$0.2 million in 2Q17, from US$0.4 million a year ago, mainly due to share of loss from a joint venture company.
Samudera Shipping says the regional container shipping industry continues to face headwinds amid capacity and demand imbalance. Competition for cargo remains strong,
resulting in intense pressure on freight rates, while bunker prices are expected to continue its rally in the near term.
Shares in Samudera closed 0.3 cent higher at 17.8 cents on Wednesday.
