C H A I R M A N ’ S M E S S AG E
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
The dividend payment is subject to your
approval at the upcoming Annual General
Meeting on 27 April 2016.
Our ability to record a reasonable level of
profitability during the year in spite of the
difficulties in the market conditions is the
result of our effort to optimise our cost
and operational efficiencies. We have also
successfully maintained a healthy balance
sheet, and a relatively low gearing.
Operationally, our performance in FY15
underscored our determination to adapt
and respond nimbly to capitalise on
opportunities and manage the challenges
that arise. With demand for container
shipping services lagging capacity supply,
competition for cargo remained intense,
and thus exerted significant pressure on
freight rates. Nevertheless, through careful
monitoring of market conditions, we were
able to tap the growth opportunities in
Southeast Asia by selectively introducing
some new services and ports of call.
The bulk carrier industry continued to be
challenged by a serious downturn even
as more efficient newbuildings were
introduced into the market. In this regard,
even though charter rates for our tankers
remained relatively stable, the performance
of our bulk & tanker segment was adversely
affected by record-low charter rates for our
bulk carriers.
Looking ahead, we expect the operating
conditions in the shipping industry
continue to be challenging. The capacity
glut will continue to impact freight rates.
Industry players are making effort to
manage the situation by cancelling or
postponing newbuilding orders and
accelerate their scrapping programme.
Our focus going forward is to continue to
identify opportunities in the niche sectors
of Asia region to expand our network of
coverage. We stay committed to managing
our exposure to the bulk and tanker
industry inspite of the depressed market
conditions. To improve our operational
efficiency, we will be monitoring the market
closely for the right time to dispose of some
under-performing or aging vessels, and
acquire or charter in younger vessels at
lower prices.
AWord of Appreciation
I am thankful to have a dedicated team of
management and employees at Samudera.
Their tenacity and adaptability to challenges
faced by our industry is the core of our
resilience.
I am also grateful to our shareholders,
customers, agents, partners and business
associates for their support of the Group.
To my fellow Directors, their experience and
counsel have been our guiding force over
the years, and I would like to express my
appreciation of their dedication.
The journey ahead may be fraught with
difficulties but I believe we will be able to
surmount them with your support.
Masli Mulia
Executive Chairman
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