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THIRD QUARTER FINANCIAL STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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Income Statement for the Third Quarter ended 30 September 2011

Statement of Comprehensive Income for the Third Quarter ended 30 September 2011

Review of Performance

Income statement

Group revenue for the third quarter ended 30 Sep 2011 ("3Q11") rose 20.3% to US$116.9 million, from US$97.2 million for the corresponding period in 2010 ("3Q10").

Container shipping, which recorded a 20.3% increase in revenue, benefited from higher volume in Indonesia domestic shipping services, as well as some intra-Asia trade routes. Total container volume handled rose 8.1% to 353,600 TEUs in 3Q11, from 327,200 TEUs a year ago. Compared to 3Q10, freight rates for Indonesia domestic shipping services were higher due to increase in demand during the quarter, while rates for intra-Asia services were slightly lifted by the implementation of surcharges in certain trade lanes.

Revenue contribution from bulk and tanker business registered a 17.7% improvement contributed mainly from the deployment of two supramax vessels which started operation in 2Q11.

However, cost of services rose 27.7% to US$108.8 million, as a result of higher bunker price, increased charter-hire for some container vessels upon lease renewal and an increase in cost denominated in local currencies, such as stevedoring and port charges, due to the depreciation of US currency. The negative impact of the high cost of services led to an 85% decline in gross profit for the regional container shipping business. This was mitigated by improvements in the Indonesia domestic container shipping as well as bulk and tanker segments, thus resulting in a 32.8% decline in overall gross profit to US$8.0 million.

During the period, the Group registered a foreign exchange gain of US$0.9 million, on the revaluation of non-US dollar denominated assets and liabilities.

The adjustment in the salvage value of the Group's vessels as at 30 Sep 2011 has led to a reduction of depreciation expense by US$0.8M in 3Q11.

In consideration of the above, as the cost of services increased at a rate higher than the increase in revenue, the Group recorded a 37.8% decline in profit after tax to US$3.9 million for 3Q11, compared to 3Q10.

Balance sheet

As at 30 Sep 2011, the Group's fixed assets stood at US$374.7 million, compared to US$315.2 million at the close of 2010, following the addition of five container vessels to its fleet.

Trade debtors increased by 16.1% to US$53.7 million and trade creditors rose by 44.2% to US$30.0 million. The increase in both trade debtors and trade creditors are in line with the increase in the volume and activities of the Group during the period.

Balance Sheet

Commentary On Next 12 months prospects

Demand for Indonesia domestic shipping services is expected to remain strong, and present opportunities for growth in the months ahead. In line with this, the Group has, in August 2011, added two more 378-TEU container vessels, namely Sinar Jimbaran and Sinar Jepara, for deployment in Indonesia waters. In October 2011, the Group has also re-flagged its chemical tanker, Sinar Busan, under Indonesian registry, in order to continue tapping opportunities there.

Nevertheless, the Group is mindful that uncertainties in global economic conditions, along with the vessel over-supply situation, will place freight rates under pressure, while the high bunker price is expected to have a negative impact on operating cost.

In July 2011, the Group acquired Sinar Bandung, a 1,054-TEU container vessel it had previously been charter-hiring for its Bangkok Express Service (BKX). The Sinar Bandung acquisition, along with the acquisition of two other similar-sized vessels - Sinar Bintan and Sinar Solo - in the first half of the year, is part of its strategy of maintaining a balanced fleet of owned and chartered-in vessels. This will offer the Group greater flexibility in fleet deployment and provide stability in the cost of operating its fleet.