Samudera Shipping's 1HFY2023 earnings down 61.2% y-o-y as shipping rates normalise

Nicole Lim
3-min read

The group also recorded a 35.8% drop in revenue to US$305.9 million, compared to US$476.2 million in the same period a year ago.

Samudera Shipping Line S56 has recorded lower earnings of US$66.7 million ($88.14 million) for the 1HFY2023 ended in June, a 61.2% decrease from US$171.7 million in 1HFY2022.

The group also recorded a 35.8% decrease in revenue to US$305.9 million, compared to US$476.2 million in the same period a year earlier, as shipping rates normalise in the post-pandemic market.

Cost of sales for 1HFY2023 declined by 16.7% to US$242.0 million, from US$290.5 million in 1HFY2022 in tandem with the lower business activity.

In the container shipping segment, its revenue declined 37.7% to US$288.5.0 million, from US$463.3 million a year ago, amid a decrease in average freight rates and container volume handled. Volume handled amounted to 907,000 twenty-foot equivalent units (TEU) in 1HFY2023, compared to 957,000 TEUs in 1HFY2022.

The bulk and tanker segment registered a 88.5% rise in revenue to US$7.8 million, from US$4.1 million in 1HFY2022, following the deployment of two additional chemical tankers that were added to the group’s fleet in Apr and Nov 2022.

Finally, revenue from the agency and logistics business grew 9.6% to US$9.7 million, from US$8.8 million in the previous corresponding period. This took into account revenue contribution from a logistics subsidiary in Indonesia in which the group acquired a 50% stake in May 2022, that amounted to a US$3.1 million gain on consolidation.

The group recorded higher financial income of US$6.3 million in 1HFY2023, compared to US$0.3 million a year ago, in view of higher interest rate income received for its fixed deposits.

Samudera recorded a lower cash and bank balances of US$312.6 million as at end-1HFY2023, compared to US$380.9 million as at Dec 31, 2022, taking into account dividend payment and progressive payments for the acquisition of container vessels.

Meanwhile, lease liabilities increased to US$192.7 million as at end of 1HFY2023, compared to US$159.1 million as at end of FY2022, in view of three additional container vessels on long-term time charter.

In line with lower earnings, Samudera has reduced its dividend payout as well, with 2 cents per share declared, versus 7 cents paid in the preceding period.

“The ongoing normalisation of consumer behaviour and inventory stocking to pre-pandemic levels is expected to weigh down on demand for container shipping services,” says Samudera on July 27.

“Meanwhile, more capacity continues to come onstream amid delivery of newbuilds and resolved port congestion. The group thus expects the outlook for container freight activity and rates to remain subdued. At the same time, bunker prices are expected to see some volatility given geopolitical tensions.”

Shares in Samudera closed at 1.5 cents higher, or 1.7% up at 9 cents on Jul 27.

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