AMID THE FLUCTUATION IN COAL PRICE, PSS TIME CHARTER REVENUE SOARS

 JAKARTA, OCTOBER 24, 2019

PT Pelita Samudera Shipping Tbk (“the Company”, “PSS”, IDX code: PSSI)

In line with the expansion of bulk carrier (Motor Vessel), the growth of Time Charter Revenue has increased significantly by 216% which contributed to the increase in Revenue by 18% as of 30 September 2019 to US$55.2 million from US$46.8 million as of September 30, 2018. The highest Time Charter Revenue growth came from MV segment, followed by Floating Loading Facility (FLF) and Tug and Barge (TNB) segments.

MV transport capacity has increased 8 times fold by 234k DWT as of September 2019 from 31k DWT as of September 2018. With the addition of 4 MV vessels in 2019 (2 Supramax and 2 Handysize classes), the Company recorded an increase in Asset of 25% to US$137.2 million as of 30 September 2019 from US$110.1 million as of 31 December 2018. Total Asset growth is projected to increase by around 32% from 2018 with the addition of MV fleet and the purchase of 2 sets of Tugs and Barges in the fourth quarter of 2019.

The Company has spent US$38.2 million as of September 2019 from a total 2019 capex budget at US$61.3 million. Capex realization by 62% has been mostly invested in 4 MV vessels as part of the fleet expansion program. The latest MV vessel, which was recently purchased with Company’s internal cash and additional capital with the issuance of shares in September 2019, is targeted to operate at the end of fourth quarter in 2019 by obtaining a time charter contract.

The company recorded a 7% increase in Gross Profit as of 30 September 2019 compared to the same period last year in lieu of Cost of Revenue increased, mainly the increase in fuel consumption, fleet repairs, crew costs and depreciation cost which is in line with the expansion of MV fleet.

Amid the fluctuation in coal price, the Company continues to spur its operational performance with high fleet utilization at an average of 90%. With customer confidence in the Company’s solid performance, which are large coal miners in Indonesia, many long-term contracts were successfully extended in 2019. The composition of long-term FLF contracts has reached 90% up to September 2019 and 10% spot basis, while TNB long-term contract at 75% and 25% spot basis. Total contract extension in 2019 and ongoing contracts for FLF and TNB valued at around US$41 million.

Other Income as of September 2018 came from the sale of 1 FLF with gain on sale of US$7.6 million. The profit from sales contributed to a higher Net Profit of 39% as of September 2018 compared to September 2019, Earnings per Share was also higher in 2018. Net Profit as of 30 September 2019 at US$7.4 million and Earnings per Share at IDR21.

The Company’s well-managed capital structure with Debt to Asset Ratio remains healthy at 30% as of September 30, 2019, slightly up from the same period last year due to bank loans which mostly used for fleet expansion.

The Company continues to build a strong financial position with total Equity increasing by around 7% as of 30 September 2019 to US$76.7 million from US$71.7 million at 31 December 2018 with an increase in Retained Earnings of 22%.

Note: Numbers are based on interim Financial Statements as of September 30, 2019 (unaudited).