FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
9
C E O ’ S S TAT E M E N T
O N O P E R AT I O N A L R E V I E W
“Amid these challenges, we steadfastly executed our
strategy, and strove to be nimble and resilient to subsist in
the current operating environment.”
Dear Shareholders,
The supply overhang in shipping that
persisted in the shipping industry brought
us numerous challenges during the year
in review. It tested our ability to adapt to
maintain our competitiveness, as well as
our decisiveness to resolve or eliminate
aspects of the business that no longer make
strategic sense.
In FY15, we turned in revenue of USD317.7
million, a 12.8% decline from USD364.2
million in the previous financial year,
reflecting lower contributions from both
the container shipping and bulk & tanker
business segments.
On the container shipping front, we
handled 1.2 million TEUs in FY15, largely on
par with FY14. Nevertheless, revenue from
the container shipping business fell 11.7%
to USD270.3 million, from USD306.2 million,
weighed down by declining freight rates.
The bulk & tanker segment contributed
revenue of USD43.1 million, a 20.7%
decrease from USD54.3 million a year ago,
on the back of a smaller operating fleet and
weaker charter-out rates in FY15.
Cost of services fell 12.6% to USD290.4
million, versus USD332.5 million a year ago.
The Group benefitted from lower bunker
price and lower container handling costs
that arose from the weakening of regional
currencies against the Group’s reporting
currency. These were, however, partially
offset by higher charter-in rates for some of
the container vessels.
As a result, gross profit declined by 14.0% to
USD27.2 million, against USD31.7 million in
FY14. Gross profit margin was 8.6% in FY15,
versus 8.7% in FY14.
Against a backdrop of a competitive market,
challenging operating conditions, we
recorded one-off impairments amounting to
USD11.1 million on five Indonesia-flagged
container vessels and two bulk carriers.
This led to a surge in our other operating
expenses to USD13.8 million, versus USD3.5
million in FY14. Profit from operations
contracted 66.8% to USD5.8 million,
compared to USD17.6 million in FY14.
Overall, the Group recorded a net profit
attributable to shareholders of USD4.2
million in FY15, against a net profit of
USD14.3 million in FY14.
In 2015, the Central Bank of Indonesia
implemented regulations requiring all
Indonesia domestic transactions to be
made in Indonesia rupiah. Following the
implementation, we experienced an increase
in local currency collection by PT Samudera
Indonesia Tbk, our immediate holding
company who also acts as our agent in
Indonesia. Consequently, the intercompany
balance due from the immediate holding
company (trade) increased to USD4.6 million,
from USD1.1 million.
Asmari Herry Prayitno
Executive Director and CEO
