Investor Relations

Third Quarter Financial Statement for the Period Ended 30/09/2004

Income Statements for the three months ended

	The Group
	3Q 2004		3Q 2003		+ / (-)
	S$'000		S$'000		%
Turnover	165,403		131,555		25.7
Cost of services	(134,333)		(124,134)		8.2
Gross profit	31,070		7,421		318.7
Marketing expenses	(3,701)		(1,902)		94.6
Administrative expenses	(3,154)		(2,068)		52.5
Other operating income	155		-		n.m
Profit from operations	24,370		3,451		n.m
Finance expenses, net	(967)		(1,320)		(26.7)
Operating profit	23,403		2,131		n.m
Share of results of associated company	228		117		94.9
Profit before tax	23,631		2,248		n.m
Tax	(261)		(62)		n.m
Profit after tax	23,370		2,186		n.m
Minority interests	(195)		7		n.m
Net profit attributable to shareholders	23,175		2,193		n.m
n.m = not meaningful
Notes to the Income Statements
	The Group
	3Q 2004		3Q 2003		+ / (-)
	S$'000		S$'000		%
Other income including interest income	279		84		n.m
Interest on borrowings	(765)		(853)		(10.3)
Depreciation and amortisation	(4,367)		(4,549)		(4.0)
(Provision for) / Write back of doubtful trade debts and bad trade debts written off	(35)		523		n.m
Foreign exchange loss	(326)		(551)		(40.8)
Gain on disposal of fixed assets	27		-		n.m
Unrealised gain on investment securities	114		33		n.m

as at the end of the immediately preceding financial year.

Balance Sheet

	The Group			The Company
	30/9/2004	31/12/2003		30/9/2004	31/12/2003
	S$'000	S$'000			S$'000
Share capital and reserves
Share capital (457,675,000 shares)	45,768	45,768		45,768	45,768
Share premium	53,432	53,432		53,432	53,432
Share redemption reserve	504	504		504	504
Capital reserve	267	267		-	-
Translation reserve	3,552	3,635		-	-
Accumulated profits	123,626	92,173		87,767	62,852
	227,149	195,779		187,471	162,556
Minority interests	1,819	1,429		-	-
	228,968	197,208		187,471	162,556
Subsidiaries	-	-		71,440	71,275
Associated company	743	445		283	283
Fixed assets	163,421	177,636		1,437	19,133
Deferred charges	9,579	6,646		-	-
Other non-current assets	41	59		36	54
Current assets
Stocks	2,271	1,887		-	-
Trade debtors	96,729	72,024		90,775	66,634
Other debtors, deposits and prepayments	14,576	12,463		11,885	11,155
Due from immediate holding company (trade)	1,809	623		1,184	623
Due from subsidiaries (trade)	-	-		1,598	508
Due from subsidiaries (non-trade)	-	-		11,307	9,484
Due from related companies (trade)	2	552		-	-
Due from associated company (non-trade)	147	283		147	283
Investment securities	19,896	10,725		19,896	10,725
Call and fixed deposits	20,487	12,667		17,142	9,588
Cash and bank balances	27,577	19,784		18,136	11,954
	183,494	131,008		172,070	120,954
Current liabilities
Trade creditors	37,741	37,903		30,833	31,705
Other creditors and accruals	23,361	13,666		16,382	8,552
Due to immediate holding company (non-trade)	-	486		-	-
Due to related companies (trade)	2,282	1,404		-	84
Hire purchase creditors, current portion	102	104		68	66
Bank term loans (secured), current portion	15,306	14,961		1,876	-
Provision for tax	771	697		273	312
	79,563	69,221		49,432	40,719
Net current assets	103,931	61,787		122,638	80,235
Non-current liabilities
Due to subsidiary (non-trade)	-	-		8,147	8,153
Deferred tax	375	344		-	-
Hire purchase creditors, non-current portion	403	458		216	271
Bank term loans (secured), non-current portion	47,969	48,563		-	-
	228,968	197,208		187,471	162,556

Amount repayable in one year or less, or on demand



As at 30/09/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured
S$15.41 mil	0	S$15.07 mil	0



Amount repayable after one year



As at 30/09/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured
S$48.37 mil	0	S$49.02 mil	0



Details of any collateral

The Group's borrowings are secured by ways of:
• Corporate guarantee from Company's immediate holding Company, PT Samudera Indonesia Tbk.
• Corporate guarantee from the Company
• Legal mortgages over certain vessels of the Company and its subsidiaries
• Legal charges over certain bank accounts
• Assignment of income derived from certain charter hire contacts of subsidiaries
• Assignment of insurance of certain vessels of the subsidiaries
• Fiduciary assignment of certain receivables of a subsidiary

Consolidated Cash Flow Statements for the three months ended 30 September

	3Q 2004 S$'000		3Q 2003 S$'000
Cash flows from operating activities
Profit before tax	23,631		2,248
Adjustments:
Amortisation of deferred charges	1,449		1,204
Depreciation of fixed assets	2,918		3,345
Interest expense	765		853
Interest income	(124)		(51)
Provision for / (Write back of) doubtful trade debts and bad trade debts written off	35		(523)
Unrealised gain on investment securities	(114)		(33)
Share of results of associated company	(228)		(117)
Gain on disposal of fixed assets	(27)		-
Operating profit before working capital changes	28,305		6,926
(Increase) decrease in:
Stocks	9		28
Trade debtors	(18,504)		(3,129)
Other debtors, deposits and prepayments	(1,756)		(259)
Due from immediate holding company	(413)		(540)
Due from related companies	-		424
Increase (decrease) in:
Trade creditors	2,313		7,904
Other creditors and accruals	5,973		(1,117)
Due to related companies, net	(188)		(794)
Due to immediate holding company	-		252
Due to minority shareholders of a subsidiary	-		(349)
Cash generated from operations	15,739		9,346
Interest paid	(765)		(853)
Tax paid	(98)		(8)
Net cash generated from operating activities	14,876		8,485
Cash flows from investing activities
Interest income received	124		51
Acquisition of fixed assets	(9,524)		(12,739)
Proceeds from disposal of fixed assets	53		-
Additions to deferred charges	(573)		(3,343)
Purchase of investment securities	(5,362)		(620)
Acquisition of shares of a subsidiary from a minority shareholder	-		(490)
Issuance of shares of a subsidiary to minority shareholders	-		342
Net cash used in from investing activities	(15,282)		(16,799)
Cash flows from financing activities
(Repayments of) Proceeds from hire purchase liabilities, net	(20)		32
Proceeds from bank term loans	8,764		8,837
Repayments of bank term loan	(3,746)		(5,069)
Net cash generated from financing activities	4,998		3,800
Net increase / (decrease) in cash and cash equivalents	4,592		(4,514)
Effect of exchange rate changes on cash and cash equivalents	52		56
Cash and cash equivalents at the beginning of the third quarter	43,420		35,356
Cash and cash equivalents at the end of the third quarter	48,064		30,898

GROUP 3Q 2004	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	Total
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2004	45,768	53,432	504	267	4,164	100,451	204,586
Currency translation	-	-	-	-	(612)	-	(612)
Net profit for the period	-	-	-	-	-	23,175	23,175
Balance as at 30 Sept 2004	45,768	53,432	504	267	3,552	123,626	227,149
GROUP 3Q 2003	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2003	45,768	53,432	504	267	6,860	92,641	199,472
Currency translation	-	-	-	-	(1,629)	-	(1,629)
Net profit for the period	-	-	-	-	-	2,193	2,193
Balance as at 30 Sept 2003	45,768	53,432	504	267	5,231	94,834	200,036
COMPANY 3Q 2004			Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
			S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2004			45,768	53,432	504	67,234	166,938
Net profit for the period			-	-	-	20,533	20,533
Balance as at 30 Sept 2004			45,768	53,432	504	87,767	187,471
COMPANY 3Q 2003		Share capital	Share premium	Share redemption reserve	Translation reserve	Accumulated profits	TOTAL
		S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Jul 2003		45,768	53,432	504	23	65,720	165,447
Net profit for the period		-	-	-	-	545	545
Currency translation		-	-	-	(8)	-	(8)
Balance as at 30 Sept 2003		45,768	53,432	504	15	66,265	165,984

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reportedon. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

During the three months ended 30 Sept 2004, there was no change in the Company's share capital (2003: 457,675,000 shares).

2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.

The figures have not been audited or reviewed by the auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation in the financial statements of the current financial reporting period as in the audited financial statements for the year ended 31 December 2003.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

Not applicable.

6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.

	Group Figures
	3Q 2004	3Q 2003
Earnings per ordinary share for the period based on net profit attributable to shareholders:
(i) Based on weighted average number of ordinary shares in issue	5.06 cents	0.48 cents
(ii) On a fully diluted basis	N.A.	N.A.

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the:-

(a) current financial period reported on; and
(b) immediately preceding financial year.

3Q 2004	Group		Company
	30 Sept 2004	31 Dec 2003	30 Sept 2004	31 Dec 2003
Net asset value backing per ordinary share based on issued share capital as at the end of the period	50.03 cents	43.09 cents	40.96 cents	35.52 cents

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:-

(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

The Group's revenue increased by 25.7% compared to Q3 2003. The increase in revenue was due to several factors, namely, deployment of three additional coal carriers and a chemical carrier, increase in activities of third party vessel handling in the Industrial Shipping business, contribution from new subsidiaries in India and Thailand, increase in container volume from existing as well as new routes, improved freight rates and increase in charter hire rates for vessels which were chartered out by the Group.

The Group's cost of services also increased as a result of increase in charter hire cost, bunker price as well as the price of containers and steel.

Despite the increase in cost of services, the net profit of the Group for Q3 2004 increased due to several factors as described below:
• Increase in revenue as explained in the first paragraph above.
• Improved profitability of certain vessels in Industrial Shipping.
• The restructuring of services in the Middle East resulted better contribution to the Group performance.
• The routes, which commenced in Q3 2003 have become more stable and thus generated profit for the Group.
• Lower foreign exchange loss in Q3 2004.
• Additional profit from subsidiaries and associates in Thailand, Indonesia, Malaysia, India and United Arab Emirates.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

Not applicable.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

Although the major part of the Group's vessel charter hire cost will remain unchanged in the 4th quarter, possible increase in bunker price and lower container volume usually associated with the festive seasons in November and December are likely to affect the performance of the Container Shipping business in Q4. In addition, a weakening of the US Dollar against Singapore Dollar may have an adverse effect on the Group's results.

Whilst the Group expects the current strong demand in the container shipping business to be maintained, it anticipates that increase in charter hire rates and possible bunker prices may result in lower margins. However, as the demand for container vessels remain strong, the Group expects better contribution from the sub-letting of some container vessels.

With the addition of Sinar Tokyo, delivered in September 2004, the Group's Industrial Shipping will have a fleet of 21 vessels. These vessels will continue to contribute positively to the Group.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

Not applicable.


(d) Books closure date

Not applicable.

12. If no dividend has been declared/recommended, a statement to that effect.

No interim dividend has been declared for the period ended 30 September 2004.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year.

Not applicable.

14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.

Not applicable.

15. A breakdown of sales.

Not applicable.

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year.

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year ()	Previous Full Year ()
Ordinary	0	0
Preference	0	0
Total:	0	0

17. Interested Person Transactions

The aggregate value of the interested person transactions conducted pursuant to the shareholders' mandate obtained in accordance with Chapter 9 of the SGX-ST's listing manual were as follows:



Name of Interested Persons	Aggregate value of all interested person transactions during the financial year under review		Aggregate value of all interested person transactions conducted under a shareholders' mandate pursuant to Rule 920 of the SGX Listing Manual
	Group		Group
	3Q 2004	3Q 2003	3Q 2004	3Q 2003
Provision of services (by Holding Company)	S$'000	S$'000	S$'000	S$'000
Management Fees	-	-	174	174
Agency Commission	-	-	1,192	1,150
Provision of services (by Related Companies)
Management Fees	-	-	12	12
Agency Commission	-	-	10	-
Ship Management Fees	-	-	260	301

BY ORDER OF THE BOARD

Anwarsyah
Executive Director
28 October 2004