SINGAPORE (Oct 26): Samudera Shipping has swung back to profitability in 3Q17 ended Sept with earnings of US$0.48 million, compared with a loss of US$3.8 million in 3Q16.
Revenue rose 14.2% to US$69.7 million from US$61 million, mainly driven by higher revenue contribution from its container shipping business segment.
With a 2.3% increase in container volume handled to 279,000 TEUs, along with higher freight rates, revenue from the container shipping business segment rose 18.0% to US$61.5 million, versus US$52.1 million in 3Q16.
Revenue from the bulk & tanker business declined 13.8% to US$6.7 million in 3Q17, from US$7.7 million in 3Q16, as the group operated a smaller tanker fleet year-on-year. The decline was partially mitigated by improvements in the vessel employment days of the existing bulk & tanker fleet and charter rates of the group’s bulk carriers.
The group’s cost of services rose 7.6% to US$65.7 million in 3Q17, compared to US$61.0 million in 3Q16, taking into consideration the higher bunker price and greater container volume handled.
With revenue growth outpacing the rise in cost of services, the group recorded US$4.0 million in gross profit in 3Q17, compared to US$8,000 in 3Q16.
In its outlook, Samudera says the excess capacity that has previously hampered industry recovery is expected to remain. Meanwhile, operating conditions for the bulk and tanker business is expected to continue its positive trend, particularly on the back of an improvement in the dry bulk market.
Shares in Samudera Shipping closed 1 cent higher at 24 cents on Thursday.
