PSS REACHED A DOUBLE DIGIT GROWTH REVENUE AT THE BEGINNING OF Q4/2019

PSS REACHED A DOUBLE DIGIT GROWTH REVENUE AT THE BEGINNING OF Q4/2019 

JAKARTA, NOVEMBER 28, 2019

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

With the Company’s focus in 2019 on expanding market share, fleet expansion on buk carrier (Motor Vessels) and Tug and Barge (TNB), along with increasing margin profitability, the Company is optimistic that 2019 target will be achieved. The growth of Time Charter Revenue has increased significantly by 253% as of October 31, 2019 which contributed to the increase in Revenue by 22% to US$62.7 million from US$51.3 million as of October 31, 2018. The highest Time Charter Revenue growth came from MV segment, followed by Floating Loading Facility (FLF) and TNB segments.

The Company recorded a 25% increase in Gross Profit as of October 31, 2019 to US$16.1 million from US$12.9 million compared to the same period last year.

TNB’s business segment accounts for 50% of Total EBITDA followed by FLF by 32% and MV’s latest business line by 18%. As of October 2019, the composition of long-term contracts for FLF has reached 90% and 10% spot basis, while TNB long-term contracts at 75% and 25% spot basis.

The Company has spent US$45.8 million as of October 2019 from a total 2019 capex budget at US$61.3 million. Capex realization by 75% has been mostly invested in 4 units of MV, 1 unit of tugboat and 2 units of barge as part of the fleet expansion program. The Company recorded an increase in Asset of 28% to US$140.6 million as of October 31, 2019 from US$110.1 million as of December 31,2018.

There was gain on sale of US$7.6 million from the sale of 1 FLF in September 2018 which contributed to a higher Net Profit of 19% as of October 2018 compared to October 2019. Net Profit as of October 31, 2019 at US$9.2 million. Operational performance remains solid, besides continued fleet expansion, the Company continued to take initiatives on strict cost savings monitoring, including repair and maintenance (docking) which completed faster than targeted. Fleet utilization was maintained high at an average of 94% thru October 2019.

The Company’s well-managed capital structure with Debt to Asset Ratio and Debt to Equity Ratio remain healthy at 30% and 50% respectively as of October 31, 2019, slightly up from the same period last year due to bank loans from Citibank and ICICI which mostly used for fleet expansion. Current Ratio decreased to 0.81 from 2.22 due to MV payments and short-term bank loan from Citibank. Total Equity has increased by 18% as of October 31, 2019 to US$84.6 million from US$71.7 million at December 31, 2018 with an increase in Retained Earnings of 30%, an increase of Share Capital and Additional Paid In Capital at 6% and 144% respectively due to issuance of new shares through Non Pre-Emptive Rights.

Continued fleet expansion will help PSS to achieve its organic Revenue growth target of around 20% to 25% in 2019.

Note: Numbers are based on interim Financial Statements as of October 31, 2019 (unaudited).