World News
Singapore-Listed Samudera Shipping Says Q2 Profit Decline Cushioned by Cheaper Bunkers
Falling freight rates have weighed down profits for Singapore-listed Samudera Shipping Line Ltd., though the results were somewhat cushioned by cheaper bunkers, the company announced in an emailed statement.
According to the Samudera, overall revenues fell 16.1 percent to $81.3 million, with container shipping revenues falling 16.6 percent to $68.4 million and the bulk and tanker segment declining 15.9 percent to $11.5 million.
However, even as gross profit fell to $6.6 million from $7.6 million, gross profit margins improved to 8.1 percent as cost of services declined - largely on the backs of lower container volumes handled, fewer vessels operated in the bulk and tanker business, and a decline in bunker prices.
In recent months, the company has reportedly exited "non-profitable routes into vessel chartering," and has been focusing on on improving operational efficiency and maximising the utilisation of its fleet.
Samudera said that strong competition in both the container and bulk and tanker segments mean that the markets will remain "challenging" in the near to medium term.
"While lower bunker price and charter-in rates should help to mitigate the impact, the Group expects these to be volatile in the near term as well," the company said.
"The Group plans to explore new opportunities in existing markets and to grow its market share."
Earlier this year, Goldman Sachs predicted that the combination of low oil prices and overcapacity would likely keep shipping freights low until 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 516.50 | 3.00 | 692.50 | 3.50 |
| Rotterdam | 506.00 | 1.50 | 713.50 | 14.00 |
| Houston | 501.50 | 0.00 | 732.50 | 10.00 |
| Fujairah | 511.00 | 3.00 | 750.00 | 2.50 |
| Global 20 Ports Average | 550.00 | 0.50 | 775.00 | 1.50 |
| Global 4 Ports Average | 508.50 | 2.00 | 722.00 | 1.50 |
| Global Average Bunker Price | 588.00 | 0.00 | 818.50 | 2.50 |
Popular Now More
-
Jul 21The EU has unveiled its new sanctions package against Russia, cutting the oil price cap to $47.6/bbl and blacklisting over 100 more vessels, including for the first time an Indian refinery linked to Rosneft. -
Jul 16The firm will launch bunker supply at OPL Dakar in Senegal from August, an Aurelio representative tells Ship & Bunker. -
Jul 18US lawmakers have reintroduced two bills to curb emissions from shipping, after earlier proposals stalled in Congress.