CHAIRMAN'S MESSAGE
Dear Shareholders,
Amid a tough operating environment of overcapacity, high oil prices and economic uncertainties, Samudera Shipping Line (“Samudera”) has worked hard in the past few years to consolidate our market position. On behalf of the Board of Directors, I am pleased to share with you the key updates of the Group for the financial year ended 31 December 2014 (“FY14”) and to report that our strategy to unburden ourselves of poor performing assets and services while improving vessel utilisation has yielded good results. With a lighter cost base, we have been able to improve the Group’s profitability.
As a result of Samudera’s rationalisation exercise, we recorded a 6.9% decrease in revenue to USD364.2 million in FY14 from USD391.2 million in the financial year ended 31 December 2013 (“FY13”). This was due mainly to a decline in container volume handled and the number of bulk carriers and tankers operated. Overall, the reduction in services was a result of the Group’s decisive move to cut down poor performing services.
Along with lower container volume handled, the decline in bunker prices in the latter half of the year and lower charter-in rates, helped to reduce cost of sales by 13.0% to USD332.5 million from USD382.0 million in FY13. Consequently, we recorded an increase in gross profit to USD31.7 million, compared to USD9.2 million in FY13. Net profit after tax reached USD14.5 million, marking a decisive turnaround from the net loss of USD2.1 million recorded in FY13.
The improvement in our full-year performance was predominantly driven by our nimbleness, which enabled us to adapt and respond quickly to changes in market conditions. Out of our 28 container vessels with capacities ranging from 241 TEUs to 4,586 TEUs, 15 were chartered-in. This has given us the flexibility to shed excess capacity as the charter contracts expire and exit unprofitable routes. On top of that the Company has lowered its charter-in cost, following the expiry of long term chartered-in vessels contracted at high charter-in rates. We have also been able to charter in more vessels on an ad hoc basis at attractive rates as needed to cater to short-term demand. Having streamlined our fleet and services, we improved the vessel utilisation by collaborating with other industry players to swap cargo slots to improve load factors and maintain network connectivity for our customers.
The profitability of the bulk & tanker segment also improved year-on-year, despite a smaller fleet following the disposal of poor performing and older vessels. This reflects our active effort to manage the charter-out contracts of our vessels to ensure full utilisation of our fleet and maximizing returns in the face of prevailing competition. Our ship management and operation services have also contributed positively in FY14.
Overall, the Group’s assets have been utilised more optimally following the consolidation and rationalisation process. Our fleet and scale of operations is smaller compared to FY13, but this prudent exercise has enabled us to navigate better on a rather tough course.
In view of our financial performance, the Board is pleased to propose a tax-exempt final dividend of 0.8750 Singapore cents per ordinary share and a tax-exempt special dividend of 0.8750 Singapore cents per ordinary share. This works out to a total payout for FY14 of 1.750 Singapore cents. The dividends are subject to shareholders’ approval at the upcoming Annual General Meeting and, if approved, are expected to be paid out in May 2015.
Going forward, we expect global demand for cargo to remain uncertain. Freight rates, which have been low in the past year, could continue to face pressure in view of the idle capacity in the industry. Competition for container cargo remains stiff as mainline carriers continue to deploy their excess capacity on feeder routes. However, our current fleet of smaller vessels is better suited to the relatively limited port infrastructure of developing economies in the region, including Indonesia. This creates opportunities for us to provide feeder services to these ports. Our focus in 2015 is to identify and capitalise on more opportunities in the region, including India, Indonesia and other ports in Asia which promises better growth potential in the near to medium term. In this regard, we will continue to review our fleet composition in tandem with our service network and to optimise our vessel utilisation.
Our bulk and tanker fleet continues to be gainfully employed mainly on time charter contracts and contracts of affreightment. We will continue to focus on optimising the operational efficiency of this business. While charter rates for our tankers are expected to be relatively stable, the oversupply of bulk carriers amid low cargo volumes will continue to exert downward pressure on the rates for these vessels.
The strength of the Samudera brand and reputation in Indonesia has drawn many loyal customers to the Samudera Group over the years. This is an advantage for us as we work towards maintaining a strong footing in this market. Indonesia is potentially one of the highest growing economies in the region, and we will continue to leverage on our close ties with our parent company, PT Samudera Indonesia, to capitalise on opportunities that present themselves there.
A Word of Appreciation
As a provider of shipping and logistics services, the ability of our Company to provide the best solutions is closely tied to with our most valuable assets – our people. I am grateful to our employees and management team who have stood united to traverse the challenges and deliver the performance turnaround in FY14. While the year ahead will not be a bed of roses, I am confident that our cohesion as a team will accord us the resilience to ride out any uncertainty.
We are also grateful to our shareholders, customers, agents, partners and business associates for their faith in Samudera. Thank you for your support.
Finally, I would like to express my appreciation to my fellow Directors for their valuable counsel through the years.
In the year ahead, we at Samudera will continue to work hard to remain relevant and meaningful to our customers and all our stakeholders. I look forward to your continued support.
Masli Mulia
Executive Chairman
CHAIRMAN'S MESSAGE Dear Shareholders, Amid a tough operating environment of overcapacity, high oil prices and economic uncertainties, Samudera Shipping Line (“Samudera”) has worked hard in the past few years to consolidate our market position. On behalf of the Board of Directors, I am pleased to share with you the key updates of the Group for the financial year ended 31 December 2014 (“FY14”) and to report that our strategy to unburden ourselves of poor performing assets and services while improving vessel utilisation has yielded good results. With a lighter cost base, we have been able to improve the Group’s profitability.As a result of Samudera’s rationalisation exercise, we recorded a 6.9% decrease in revenue to USD364.2 million in FY14 from USD391.2 million in the financial year ended 31 December 2013 (“FY13”). This was due mainly to a decline in container volume handled and the number of bulk carriers and tankers operated. Overall, the reduction in services was a result of the Group’s decisive move to cut down poor performing services.Along with lower container volume handled, the decline in bunker prices in the latter half of the year and lower charter-in rates, helped to reduce cost of sales by 13.0% to USD332.5 million from USD382.0 million in FY13. Consequently, we recorded an increase in gross profit to USD31.7 million, compared to USD9.2 million in FY13. Net profit after tax reached USD14.5 million, marking a decisive turnaround from the net loss of USD2.1 million recorded in FY13.The improvement in our full-year performance was predominantly driven by our nimbleness, which enabled us to adapt and respond quickly to changes in market conditions. Out of our 28 container vessels with capacities ranging from 241 TEUs to 4,586 TEUs, 15 were chartered-in. This has given us the flexibility to shed excess capacity as the charter contracts expire and exit unprofitable routes. On top of that the Company has lowered its charter-in cost, following the expiry of long term chartered-in vessels contracted at high charter-in rates. We have also been able to charter in more vessels on an ad hoc basis at attractive rates as needed to cater to short-term demand. Having streamlined our fleet and services, we improved the vessel utilisation by collaborating with other industry players to swap cargo slots to improve load factors and maintain network connectivity for our customers.The profitability of the bulk & tanker segment also improved year-on-year, despite a smaller fleet following the disposal of poor performing and older vessels. This reflects our active effort to manage the charter-out contracts of our vessels to ensure full utilisation of our fleet and maximizing returns in the face of prevailing competition. Our ship management and operation services have also contributed positively in FY14.Overall, the Group’s assets have been utilised more optimally following the consolidation and rationalisation process. Our fleet and scale of operations is smaller compared to FY13, but this prudent exercise has enabled us to navigate better on a rather tough course.In view of our financial performance, the Board is pleased to propose a tax-exempt final dividend of 0.8750 Singapore cents per ordinary share and a tax-exempt special dividend of 0.8750 Singapore cents per ordinary share. This works out to a total payout for FY14 of 1.750 Singapore cents. The dividends are subject to shareholders’ approval at the upcoming Annual General Meeting and, if approved, are expected to be paid out in May 2015.Going forward, we expect global demand for cargo to remain uncertain. Freight rates, which have been low in the past year, could continue to face pressure in view of the idle capacity in the industry. Competition for container cargo remains stiff as mainline carriers continue to deploy their excess capacity on feeder routes. However, our current fleet of smaller vessels is better suited to the relatively limited port infrastructure of developing economies in the region, including Indonesia. This creates opportunities for us to provide feeder services to these ports. Our focus in 2015 is to identify and capitalise on more opportunities in the region, including India, Indonesia and other ports in Asia which promises better growth potential in the near to medium term. In this regard, we will continue to review our fleet composition in tandem with our service network and to optimise our vessel utilisation.
Our bulk and tanker fleet continues to be gainfully employed mainly on time charter contracts and contracts of affreightment. We will continue to focus on optimising the operational efficiency of this business. While charter rates for our tankers are expected to be relatively stable, the oversupply of bulk carriers amid low cargo volumes will continue to exert downward pressure on the rates for these vessels.
The strength of the Samudera brand and reputation in Indonesia has drawn many loyal customers to the Samudera Group over the years. This is an advantage for us as we work towards maintaining a strong footing in this market. Indonesia is potentially one of the highest growing economies in the region, and we will continue to leverage on our close ties with our parent company, PT Samudera Indonesia, to capitalise on opportunities that present themselves there.
A Word of Appreciation
As a provider of shipping and logistics services, the ability of our Company to provide the best solutions is closely tied to with our most valuable assets – our people. I am grateful to our employees and management team who have stood united to traverse the challenges and deliver the performance turnaround in FY14. While the year ahead will not be a bed of roses, I am confident that our cohesion as a team will accord us the resilience to ride out any uncertainty.
We are also grateful to our shareholders, customers, agents, partners and business associates for their faith in Samudera. Thank you for your support.
Finally, I would like to express my appreciation to my fellow Directors for their valuable counsel through the years.
In the year ahead, we at Samudera will continue to work hard to remain relevant and meaningful to our customers and all our stakeholders. I look forward to your continued support.
Masli Mulia
Executive Chairman
การแปล กรุณารอสักครู่..
