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COMPLETE PURCHASE OF ADDITIONAL 1 UNIT OF MV BULK CARRIER AT THE END OF 2019, PSS SETS TO ACCELERATE GROWTH IN 2020

 

COMPLETE PURCHASE OF ADDITIONAL 1 UNIT OF MV BULK CARRIER AT THE END OF 2019, PSS SETS TO ACCELERATE GROWTH IN 2020

Ending 2019 by completing the purchase of 1 unit of Bulk Carrier (Motor Vessel) as part of a sustainable fleet expansion program, PSSI sets to accelerate logistic opportunities not only in coal transport but also other mineral commodities.

With a capacity of 28,000 dead-weight-tons (dwt), “Dewi Gandawati” is the Company’s 6th MV, part of 4 MV vessels purchased in 2019. PSSI completed the MV acquisition at US$7.5 million, which was paid with 20% internal cash and 80% paid in shares.

A two-year time charter contract was successfully obtained for this handysize class vessel to transport iron products and coal. The time charter contract was signed in December with a domestic logistics company, the vessel handover was completed in Batam on the 3rd week. The 1st shipment plan is to transport iron products from Morowali area, South Sulawesi. Time charter revenue is one of the revenue growth targets for 2020 with above 100% increase than 2019.

The Company has begun business diversification to other energy sectors, with target composition of coal transport around 70% and 30% other minerals in 2020.

Following 4 units of MV, 1 unit of tugboat and 2 units of barge purchased in 2019, PSS now owns a total fleet of 86 units, consisted of 39 sets of Tug and Barge, 3 units of Floating Loading Facility and 6 units of MV. Asset growth has increased by 27% YoY in 11M19 to US$140.1 million.

Rising domestic logistic demand particularly for energy and mineral sector will be the Company’s main focus for 2020.

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PELITA SAMUDERA SHIPPING (PSSI) FOCUSES ON DIVERSIFICATION OF NON-COAL TRANSPORTATION IN 2020

PELITA SAMUDERA SHIPPING (PSSI) FOCUSES ON DIVERSIFICATION OF NON-COAL TRANSPORTATION IN 2020

Credit: Kontan

Logistics Services and Sea Transportation Company, PT Pelita Samudera Shipping Tbk (PSSI) will focus on diversifying non-coal in 2020.

Iriawan Ibarat, President Director of PSSI, explained that the company is currently exploring three new contracts with several parties to transport iron, cement, nickel and coal in medium contracts. The contract can be executed this December or in the early of 2020.

“After the agreement between the parties is completed, the details will be shared to the public,” explained Iriawan explained to Kontan in Central Jakarta, Friday (6/12).

At present, PSSI’s revenue is still dominantly filled by coal shipments. While the remaining 10%, filled with nickel and iron shipments. In the future, continued Iriawan, his party wants to widen the portion of non-coal revenues reaching 30% and coal by 70%.

Until November 2019, PSSI has also added a total of 6 units of ships, namely 4 units of bulk cargo or Motor Vessel (MV), 1 type of barge or TNB, and 1 tugboat.

In 2020, PSS, which has been on the Indonesia Stock Exchange since 2017, plans to add several more bulk cargo (MV) vessels to support the diversification plan.

“We will provide a capex of US $ 30 million. The allocation will be focused on new vessel unit, we will track the amount of transportation needs later,” he continued.

In October 2019, PSSI reaped an increase in gross profit of 25% or equivalent to US $ 16.1 million from US $ 12.9 million. While net profit was at the level of US $ 9.2 million. In the third quarter of 2019, PSSI’s net profit was US $ 7.3 million.

Revenue from Time Charter contributed 22% to the increase in the company’s revenue, while the sector also experienced a significant increase of 253% or equivalent to US $ 62.7 million from US $ 51.3 million.

While the business line of barges or TNB contributed 50% of Ebitda, FLF  accounted for 32%, and bulk cargo ships or MV contributed 18%.

The composition of long-term contracts for FLF vessels has reached 90% and 10% spot basis. Long-term contracts for barges reach 75% and 25% spot basis.

“Until October, PSSI has spent US $ 45.8 million of capex from the US $ 61.3 million budget. The majority is used to purchase 4 MV vessels, 1 tugboat unit and 2 barge units as part of the fleet expansion program,” Imelda Agustina Kiagoes explained, Corporate Secretary, Friday (6/12).

With this performance, the company is optimistic that it can reach revenue growth reaching 20% to 25% until the end of 2019. Similarly, it estimates that it can obtain growth of up to 25% by 2020.

While in terms of net income, PSSI is projecting to grow by 10% to 15% until the end of 2020.

Original Article.

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