PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year

1 (a)(i) Income Statements for the second quarter ended 30 June

	The Group
	2Q 2003	2Q 2002	+ / (-)
	S$'000	S$'000	%
Turnover	126,258	125,007	1.0
Cost of services	(116,440)	(119,298)	(2.4)
Gross profit	9,818	5,709	72.0
Marketing expenses	(2,171)	(1,320)	64.5
Administrative expenses	(2,769)	(2,151)	28.7
Other operating income	57	179	(68.2)
Profit from operations	4,935	2,417	n.m.
Finance income	278	104	n.m.
Finance expense	(909)	(1,090)	(16.6)
Foreign exchange loss	(232)	(2,517)	(90.8)
Operating profit / (loss)	4,072	(1,086)	n.m.
Share of results of associated company	41	252	(83.7)
Profit / (loss) before tax	4,113	(834)
Tax	(55)	(173)	(68.2)
Profit / (loss) after tax	4,058	(1,007)	n.m.
Minority interests	(10)	(33)	(69.7)
Net profit / (loss) attributable to shareholders	4,048	(1,040)	n.m.

n.m. = not meaningful


1 (a)(ii) Notes to the Income Statements

	The Group
	2Q 2003	2Q 2002	+ / (-)
	S$'000	S$'000
Other income including interest income	335	283	18.4
Interest on borrowings	(909)	(1,090)	(16.6)
Depreciation and amortisation	(4,741)	(3,977)	19.2
Provision for doubtful debts and bad debts written off, net	(167)	0	n.m.
Foreign exchange loss	(232)	(2,517)	(90.8)

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as the end of the immediately preceding financial year

Balance Sheet

	The Group		The Company
	30/6/2003	31/12/2002	30/6/2003	31/12/2002
	S$'000	S$'000	S$'000	S$'000
Share capital and reserves
Share capital (457,675,000 shares @ S$0.10 each)	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	6,860	5,788	23	-
Accumulated profits	92,641	85,920	65,720	63,055
	199,472	191,679	165,447	162,759
Minority interests	1,700	1,368	-	-
	201,172	193,047	165,447	162,759
Subsidiaries	-	-	67,210	64,582
Associated company	335	-	335	-
Fixed assets	171,529	163,584	20,338	21,486
Deferred charges	5,606	2,547	1,752	497
Other non-current assets	60	59	54	54
Current assets
Stocks, less provision for stock obsolescence	1,109	1,013	-	-
Trade debtors	74,905	70,261	69,931	68,440
Other debtors, deposits and prepayments	9,832	6,022	7,819	5,296
Due from immediate holding company (trade)	1,731	2,599	1,454	2,478
Due from subsidiaries (trade)	-	-	-	379
Due from subsidiaries (non-trade)	-	-	8,874	2,123
Due from associated company	283	-	283	-
Due from related companies	423	-	-	-
Due from affiliated company (trade)	-	80	-	-
Investment in securities	10,201	4,505	10,201	4,505
Call and fixed deposits	22,716	33,663	17,008	32,176
Cash and bank balances	12,640	18,508	10,309	10,273
	133,840	136,651	125,879	125,670
Current liabilities
Trade creditors	33,052	30,911	28,682	27,438
Other creditors and accruals	12,352	12,582	10,905	11,023
Due to immediate holding company (non-trade)	76	5	-	-
Due to affiliated company (trade)	-	65	-	53
Due to subsidiary	-	-	424	-
Due to related companies	1,655	804	47	-
Due to minority shareholders of a subsidiary (non-trade)	349	224	-	-
Hire purchase creditors, current portion	84	55	66	39
Bank term loans (secured), current portion	14,715	15,200	1,226	2,423
Provision for tax	564	308	321	234
	62,847	60,154	41,671	41,210
Net current assets	70,993	76,497	84,208	84,460
Non-current liabilities
Due to subsidiary (non-trade)	-	-	8,146	8,143
Hire purchase creditors, non-current portion	414	203	304	177
Bank term loans (secured), non-current portion	46,937	49,437	-	-
	201,172	193,047	165,447	162,759

1(b)(ii) Aggregate amount of group's borrowings and debt securities



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 contracts of subsidiaries
• Assignment of insurance of certain vessels of the subsidiaries
• Fiduciary assignment of certain receivables of a subsidiary

1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

Consolidated Cash Flow Statement for the second quarter ended 30 June

	2003	2002
	S$'000	S$'000
Cash flows from operating activities
Profit / (loss) before tax	4,113	(834)
Adjustments:
Amortisation of deferred charges	1,433	730
Depreciation of fixed assets	3,308	3,247
Gain on disposal of fixed assets	-	(11)
Interest expense	909	1,090
Interest income	(278)	(104)
Provision for doubtful trade debts	167	-
Change in fair value of investment in securities	70	-
Share of results of associated company	(41)	(252)
Operating profit before working capital changes	9,681	3,866
(Increase) / decrease in:
Stocks	(176)	(134)
Trade debtors	(8,112)	521
Other debtors, deposits and prepayments	1,086	7,134
Due from immediate holding company	(1,213)	(39)
Due from related companies	(319)	214
Due from associated company	(283)	-
Increase / (decrease) in:
Trade creditors	5,050	(823)
Other creditors and accruals	1,680	2,459
Due to related companies, net	1,120	1,680
Due to affiliated company	-	(938)
Due to immediate holding company	67	1,306
Cash generated from operations	8,581	15,246
Interest paid	(909)	(1,090)
Tax refund / (paid)	103	(155)
Net cash generated from operating activities	7,775	14,001
Cash flows used in investing activities
Interest income received	278	104
Proceeds from disposal of fixed assets	-	135
Acquisition of fixed assets	(6,537)	(207)
Additions to deferred charges	(3,396)	(948)
Purchase of investment in securities	(4,562)	-
Investment in associated company	(283)	-
Proceeds from disposal of associated company	-	-
Dividend received from associated company	-	27
Cash and cash equivalents subject to restriction	2,119	(578)
Net cash used in investing activities	(12,381)	(1,467)
Cash flows used in financing activities
Proceeds from / (repayment of) hire purchase liabilities, net	22	(11)
Proceeds from bank term loans	3,938	-
Repayment of bank term loans	(4,167)	(3,115)
Dividend paid	(2,288)	(1,373)
Proceeds from issue of shares to minority shareholders of subsidiaries	-	645
Net cash used in financing activities	(2,495)	(3,854)
Net (decrease) / increase in cash and cash equivalents	(7,101)	8,680
Effect of exchange rate changes on cash and cash equivalents	97	46
Cash and cash equivalents at the beginning of the year	38,877	32,434
Cash and cash equivalents at the end of the year before cash and cash equivalents subject to restriction	31,873	41,160
Cash and cash equivalents subject to restriction	3,483	3,303
Cash and cash equivalents at the end of the year	35,356	44,463

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

Statement of Changes in Equity for the second quarter ended

GROUP 2Q 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$'000
Balance as at 1 Apr 2003	45,768	53,432	504	267	7,311	90,881	198,163
Currency translation	-	-	-	-	(451)	-	(451)
Net profit for the period	-	-	-	-		4,048	4,048
Dividend	-	-	-	-		(2,288)	(2,288)
Balance as at 30 Jun 2003	45,768	53,432	504	267	6,860	92,641	199,472
2Q 2002	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Apr 2002	45,768	53,432	504	267	10,760	76,508	187,239
Currency translation	-	-	-	-	(3,411)	-	(3,411)
Net loss for the period	-	-	-	-	-	(1,040)	(1,040)
Dividend	-	-	-	-	-	(1,373)	(1,373)
Balance as at 30 Jun 2002	45,768	53,432	504	267	7,349	74,095	181,415
COMPANY 2Q 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 Apr 2003		45,768	53,432	504	-	65,766	165,470
Currency translation		-	-	-	23		23
Net profit for the period		-	-	-	-	2,242	2,242
Dividend		-	-	-	-	(2,288)	(2,288)
Balance as at 30 Jun 2003		45,768	53,432	504	23	65,720	165,447
2Q 2002			Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
			S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 Apr 2002			45,768	53,432	504	61,154	160,858
Net loss for the period			-	-	-	(2,412)	(2,412)
Dividend			-	-	-	(1,373)	(1,373)
Balance as at 30 June 2002			45,768	53,432	504	57,369	157,073

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 reported on. 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 second quarter ended 30 June 2003, there was no change in the Company's share capital (2002: 457,675,000 ordinary shares).


2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

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 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 periods as in the latest annual audited financial statements.


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

Please refer to item 4.


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

	Group Figures
	2nd Quarter of 2003	2nd Quarter of 2002
Earnings per ordinary share for the three months based on net profits attributable to shareholders
(i) Based on weighted average number of ordinary shares in issue (cents)	0.88	(0.23)
(ii) On a fully diluted basis (cents)	0.88	(0.23)

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 period reported on and (b) immediately preceding financial year

	Group		Company
	30 Jun 2003	31 Dec 2002	30 Jun 2003	31 Dec 2002
Net asset value backing per ordinary share based on existing issued share capital as at the end of the period reported on:
Based on weighted average number of ordinary shares in issue (cents)	43.58	41.88	36.15	35.56

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss 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. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

Compared with Q2-2002, the Group's revenue in Q2-2003 increased by 1%. The establishment of Silkargo LLC ("Silkargo") in Dubai and Galaxy Shipping Services Sdn Bhd ("Galaxy") in Malaysia during the first quarter of 2003 led to the higher revenue. In addition, the deployment of additional ships by Industrial Shipping during the first quarter of 2003 also contributed to the increase in the Group's revenue. However, the increase in revenue was partially offset by decrease in Container Shipping revenue due to deterioration of freight.

The deployment of additional ships by Industrial Shipping as well as commencement of operation by Silkargo increased the cost of services. Furthermore, the Container Shipping also experienced an increase in slot charges and bunker cost in Q2-2003 as compared with Q2-2002. The slot charges increased due to more third party space utilization, joint operations and slot swap, while the bunker cost was higher because of the increase in bunker price. However, lower stevedoring and charter hire expenses, due to more efficient utilization of owned slot, resulted in a decrease in the Group's cost of services.

Increase in marketing and administrative expenses was mainly caused by:

(a)	establishment and operation of new subsidiaries, namely, Galaxy for general shipping agency in Malaysia and Silkargo for logistics services in the United Arab Emirates;
(b)	provision for doubtful debts; and
(c)	recruiting additional employees in the Industrial Shipping following from the operation of additional ships from the subsidiaries of PT. Samudera Indonesia Tbk, a substantial shareholder of the Company. Loan repayment led to 16.6% decrease in interest expense, while the lower appreciation of Singapore Dollars against US Dollars in Q2-2003 as compared with Q2-2002 resulted in a decrease in foreign exchange loss of the Group. In Q2-2003, the Group purchased additional investment in securities of $4.49 million which resulted in ending balance of $10.2 million. The investment in securities consisted of bonds and unit trusts.

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 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

Container Shipping
Container Shipping will continue to face a challenging business environment. The charter hire rate is increasing and bunker price remains uncertain. Furthermore, the PSA Anniversary Rebate that had been given to the Company since July 1st, 2002 expired on June 30th, 2003.

The Asian Feeder Discussion Group (AFDG) to which the Company is an active member, has published on the Shipping Times in June and July 2003, a rate restoration scheme on certain routes with effect from July and August 2003.

Industrial Shipping
In the second half of 2003, Industrial Shipping will increase its fleet with the delivery of 3 units of coal carriers and 1 unit of chemical tanker designed for transportation of coal and methanol respectively. These acquisitions together with the 5 vessels acquired earlier this year are expected to provide positive contribution to the Group.

Logistics and Others
The Logistics and Others business is expected to grow in the second half 2003, due to the commencement of operation of a joint venture company, PT. Jardine Tangguh Transport Services, in June 2003.


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 June 2003.


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
Preference	0	0
Total:

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 Person	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
	2nd Qtr of 2003	2nd Qtr of 2002	2nd Qtr of 2003	2nd Qtr of 2002
Provision of services (by Holding Company)
Management fee	-	-	174,150	173,362
Agency commission	-	-	853,797	925,119
Provision of services (by Related Companies)
Management fee (PT Takindo Perdana)	-	-	12,360	14,808
Charter hire (PT TSK Samudera Indonesia)	-	-	17,221	393,546
Ship Management fees	-	-	301,457	282,795
Investment in Joint Venture, PT Jardine Tangguh Transport Services)
Investment in Equity	283,200	-	-	-
Shareholders' Loan	283,200	-	-	-