FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
7
Dear Shareholders,
For Samudera, the year 2015 was marked by
protracted capacity oversupply and weak
demand, as well as freight-rate volatility
and pressure on many routes in the region.
Nevertheless, our clear strategy, along with
our fundamental characteristics of resilience
and adaptability, enabled us to withstand
the competitive pressures and economic
challenges. On behalf of my fellow Directors,
I am pleased to provide you with an update
on the developments and performance of
the Group for the financial year ended
31 December 2015 (“FY15”).
Container volume handled in FY15 at
1.2 million TEUs (twenty-foot equivalent
unit) was similar to that handled for the
year ended 31 December 2014 (“FY14”).
Nevertheless, in view of the declining
trend in container freight rates, along with
lower charter rates for our bulk & tanker
fleet operated, our revenue fell 12.8% to
USD317.7 million in FY15, from USD364.2
million in the preceding financial year
(“FY14”).
We benefited from the drop in bunker
prices and lower container handling costs
arising from the weakening of the regional
currencies against the US dollar, which is our
functional currency. These benefits were,
however, partially eroded by higher charter-
hire rates for some of our container vessels.
The result was thus a 12.6% fall in cost of
services to USD290.4 million, compared to
USD332.5 million a year ago. Consequently,
gross profit recorded a decline of 14.0% to
USD27.2 million, versus USD31.7 million in
FY14. Gross profit margin also fell slightly to
8.6%, from 8.7%.
In light of current asset values, prevailing
market prospects and our planned disposal
of underperforming and aging vessels, we
deemed it prudent to take a non-recurring
impairment charge of USD11.1 million on
our five Indonesia-flagged container vessels
and two bulk carriers.
Taking the above into account, we
registered net profit attributable to
shareholders of USD4.2 million in FY15,
versus USD14.3 million in the previous year.
In line with our commitment to maintain
dividend distributions during profitable
years to shareholders who have steadfastly
supported us over the years, the Board has
proposed a tax-exempt final dividend of
0.27 Singapore cents per ordinary share
and a tax-exempt special dividend of
0.45 Singapore cents per ordinary share.
The special cash dividend is accorded
following careful consideration of the
Group’s cash availability after taking into
account of Group’s business expansion and
investments needs.
C H A I R M A N ’ S M E S S AG E
“Our performance in FY15 underscored our determination
to adapt and respond nimbly to capitalise on
opportunities and manage the challenges that arise.”
Masli Mulia
Executive Chairman
