Asia/Pacific News
Fuel Costs Contribute to Samudera's Loss
Cargo and logistics transportation company PT Samudera Indonesia [SGX:S56] (Samudera) said rising fuel costs were partly responsible for a $3.2 million loss from operations the company suffered in the first quarter of 2013.
Samudera's operating loss was larger than the $2.32 million it lost in the same period last year, and revenues were down to $96.3 million from $110.4 million.
"The market demand for freight is currently low," said President Masli Mulia, according to the Jakarta Post.
"On top of that, the global fuel prices have gone up."
CFO Anwarsyah Batubara said about 20 to 30 percent of the company's costs are fuel related.
Anwarsyah said Samudera will increase its focus on the improving domestic Indonesian market in coming months while cutting losses on less profitable business activities and increasing vessels' shipment loads.
"We will be more efficient with our costs and improve the utilization of our assets," he said.
The company also said it has reconditioned some vessels to reduce their fuel use.
