Revenue rises 28% to US$285.5 million on the back of increased business activity and container freight rate improvements

 

[SINGAPORE] Samudera Shipping : S56 -0.5% reported a 100.4 per cent increase in net profit to US$41.8 million for its first half ended Jun 30, from US$20.9 million in the corresponding year-ago period.

 

Revenue rose 28 per cent to US$285.5 million, the mainboard-listed company said on Tuesday (Jul 29). This was attributed to increased business activity and container freight rate improvements. 

 

Container volume in H1 stood at 990,000 20-foot equivalent units (TEUs), up from 879,000 TEUs in the same period in the previous year. 

 

Contributions from the container segment were higher as the average freight rate for H1 FY2025 exceeded that in the same period in FY2024, the company said.

 

Revenue from the group&rsquo s container segment rose 29.3 per cent to US$261.9 million in the latest H1, from US$202.5 million a year ago.

 

Samudera Shipping expects the operating environment for the container shipping industry to remain challenging in the near term. It noted that globally, container freight rates have started to ease from earlier highs following the front-loading of cargoes in previous months.

 

&ldquo Further softening of freight rates is expected, in view of the progressive implementation of US tariffs across various countries and ongoing geopolitical tensions in the Middle East,&rdquo the group said. 

 

Revenue from its logistics segment rose 15.6 per cent to US$9.1 million from US$7.8 million a year ago, mainly due to an increase in fourth-party logistics business in Indonesia. 

 

The logistics business is expected to deliver positive returns, and Samudera Shipping sees opportunities to grow its fourth-party logistics business, leveraging its expanding track record and growing demand for such services in Indonesia. 

 

The group declared a dividend of S$0.015 per share, which will be paid out on Aug 21. 

Between May 23 and 28, Samudera Shipping Line executive director and CEO Bani Maulana Mulia acquired 73,100 shares at an average price of S$0.819 apiece. This increased his direct interest from 0.67 per cent to 0.68 per cent and followed his acquisition of 99,600 shares at S$0.80 apiece between May 8 and 14. 

Between May 8 and 14, Samudera Shipping Line executive director and CEO Bani Maulana Mulia acquired 99,600 shares at an average price of S$0.80 apiece. This increased his direct interest from 0.65 to 0.67 per cent. His preceding acquisition was in September 2022, with 53,200 shares purchased at S$0.94 a share.

 

These acquisitions followed Samudera providing a Q1 FY 2025 (ended Mar 31) business update on Apr 29. For the container shipping segment, volume in Q1 FY 2025 was higher compared to Q1 FY 2024, but this was lower than Q4 FY 2024.

 

For the bulk and tanker segment, fleet size increased with the delivery of two new gas carriers in 2024, and all vessels are employed under time charter contracts. In its logistics segment, the group noted that the higher volume handled in Q1 FY 2025 compared to Q1 FY2024 was mainly due to an increase in volume from existing and new customers. The segment also continues to grow with new management contracts on fourth-party logistics (4PL).

 

Bani emphasised that Samudera&rsquo s focus on continual improvement enhances its ability to navigate industry shifts and capitalise on opportunities. He maintained that one such opportunity may involve a shift of manufacturing activity towards South-east Asia and India, which could boost demand for container shipping services in these regions.

 

He reasoned that such a realignment of global shipping alliances may alter transhipment and regional shipping routes, presenting both competitive pressures and opportunities for regional operators such as Samudera. Bani also notes that despite challenges in managing vessel availability and high charter-hire costs, new vessel deliveries from 2025 onwards may alleviate some pressure.

 

He adds that Asia, particularly Indonesia, remains the group&rsquo s primary growth market for container shipping. This means the group will pursue strategic collaborations with shipping partners to explore new service offerings and expand beyond its current network, while ensuring operational resilience.