Singapore Based Samudera Posts Q2 Profit

Earnings per share were up some 411%

Singapore based regional container line Samudera Shipping Line Ltd. (Samudera) announced Tuesday an after tax profit of USD $7.5 million for the second quarter ending June 30, 2012.

Samudera attributed the profit to the implementation of bunker surcharges in the regional container shipping segment during the quarter, as well as an increase in container volume handled, and a one time gain of $4.4 million on the sale of container boxes and two vessels.

The container line also said it initiated ship management and operation services for its bulk and tanker business which contributed to the profitability of container shipping.

Group revenue increased by 11% to $129.5 million compared to $116.6 million in the same period 2011.

It also posted a 7.6% increase in container volume from the same period in the prior year to 386,300 TEUs.

Earnings per share were up some 411% to $1.38 compared to $0.27 in the second quarter of 2011.

The volatility of bunker prices "continues to be a key concern for the Group", and as such they will continue implementing bunker surcharges when able, and engaging in bunker hedging activities "when appropriate."

Samudera said despite its Indonesian domestic container shipping segment facing future challenges of port congestion and a change in fuel pricing policy by the Indonesian government, the Indonesian segment is expected to continue to grow as the country's economy is also projecting future growth.
 
Despite overall weakness in the charter hire market, the Group's bulk and tanker fleet is currently well utilised and is expected to continue to contribute positively.

Going forward, the Company says it will continue to focus on optimising fleet utilisation, performance, improving cost efficiencies, and pursuing new opportunities to grow its existing markets.

"We are encouraged to have turned in a positive set of results for the second quarter amid the challenging industry climate, and are particularly pleased with the improvement seen in our container shipping business," commented Samudera Shipping Line's CEO David Batubara.