Samudera Shipping reports 9% increase in Revenues for FY 2017

Posted by Daily Shipping Times on 05-03-2018        Tweet

SINGAPORE: Samudera Shipping recorded an 8.9% increase in revenue in FY2017 to USD283.7 million, from USD260.5 million in the previous financial year ( "FY16" ).

This was on the back of higher revenue contribution from its container shipping business segment. In light of the above, the Group recorded gross profit of USD17.7 million in FY17, which was a 21.0% improvement over the USD14.6 million recorded in FY16. As a result of the 10.0% increase in container volume handled to 1.3 million TEUs coupled with freight rates improvements, revenue from the container shipping business rose 11.2% from USD225.5 million in FY16 to USD250.7 million in FY17.

Looking ahead Samudera said: “While recent indicators point to improving conditions in the container shipping industry, the Group expects competition to heat up in 2018, led by a consolidation among mainline operators and the resulting concentration of market share.”

It further warned: “In addition, with new tonnage in excess of demand entering service in the coming year, intense competition for cargo will persist. Compounding this is the anticipated uptrend in bunker prices in the year ahead.”

“To maintain its market competitiveness amid current industry dynamics, the Group will also continue to focus on optimising asset utilisation and operational efficiency to fortify itself against challenges that lie ahead,” Samudera said, noting that it expected to continue to grow its logistics support capabilities in the region, and was currently on the lookout for opportunities to expand its warehousing and container depot capabilities.