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PELITA SAMUDERA SHIPPING DOUBLE DIGIT GROWTH IN 2019

PT Pelita Samudera Shipping Tbk (“the Company”, “PSS”, IDX code: PSSI) in 2019 focusing on expanding its fleet to grow market share, PSS recorded total Revenue of US$75.3 million, an increase of US$11.8 million or 19% as compared to previous year. The Company managed to increase the average freight rate to US$2.49 from US$1.90 per metric ton in 2018, an increase of 31.2%. Floating loading and freight Revenue increased by US$3.9 million, or 7%. Time Charter Revenue increased significantly by 304% to US$9.9 million from US$2.4 million in 2018.

The Company added 4 units of Bulk Carrier (MV) in 2019 to a total of 6 units, increasing cargo capacity from 63.0 thousand DWT to 237.5 thousand DWT or an increase by 277% from 2018. The addition of 3 units of Tug and Barge (TNB) increased the number of total fleet by 87 units at the end of 2019, including 3 units of Floating Loading Facility (FLF). The investment brought total transport capacity to 546.1 thousand metric tons, an increase of 55% from 352.5 thousand metric tons in 2018. Amid the challenge of thermal coal prices, total volume transport has managed to reach 96% of the 2019 target or amounted to 30.2 million metric tons. The highest growth came from MV segment at 277% to 1.1 million metric tons from 280.2 thousand metric tons in 2018.

In line with fleet expansion, operational costs have increased including fuel and diesel oil consumption, spare parts, and crew cost. Thanks to sustainable cost-efficiency, a Gross Profit margin has been achieved at 25%. Total Gross Profit increased by US$2.8 million to US$19.1 million from US$16.3 million in 2018, or 17%.

The Company spent US$50.1 million out of 2019 capital expenditure budget at US$ 61.3 million. Capex realization at 82% was mainly on the investment of 4 units of MV, 1 unit of Tugboat and 2 units of Barge, including fleet repair and docking. Total Asset increased by 30% to US$143.2 million from US$110.1 million in 2018. The fleet investment was mainly funded by internal cash in addition to bank loans.

TNB’s business segment accounted for 50% of total EBITDA followed by FLF at 32% and MV at 19%. FLF composition of long-term contracts reached 91%, TNB reached 74% while spot basis at 9% and 26% respectively. Out of a total of 6 MV units, 3 units managed to obtain a long-term Time Charter contract for coal transport and other commodities such as nickel, clinker and iron products. The Company will continue to explore business diversification targets outside of coal commodity, covering MV and TNB segments.

Excluding Other Revenue, the Company posted a Net Profit of US$11.3 million or an increase of 44% from US$7.9 million in 2018. Other Revenue in 2018 included a gain on sale of 1 unit of FLF at US$7.6 million. Post divestment of 1 unit of FLF succeeded in increasing the utilization for the remaining 3 FLFs in 2019. Total Net Profit for the year amounted to US$13.3 million. The Net Profit margin reached 18% contributed by improving operational excellence, tight cost monitoring and efficiency and fleet expansion strategy.

The Company’s well-managed Capital Structure, showing in Debt to Asset Ratio and Debt to Equity Ratio at 28% and 45% respectively as of December 31, 2019, slightly up from the same period last year due to bank loans which mostly used for fleet expansion.

Total Equity increased by 23% to US$88.6 million from US$71.7 million in 2018, contributed by an increase in Retained Earnings of US$10.8 million, or 48% and additional Paid In Capital of US$3.3 million, or 143%.
Alert to initiate Business Continuity Plan amid the challenge of Covid-19 pandemic, the Company is ensuring its core business and operational sustainability are well maintained by continuing to take preventative actions and execute appropriate strategies for business continuity.

JAKARTA, MARCH 23, 2019

Information regarding PSSI 2019 financial position based on Audited Financial Statements

 

PT PELITA SAMUDERA SHIPPING Tbk

Domiciled in Jakarta

(“Company”)

 NOTIFICATION

TO SHAREHOLDERS OF THE COMPANY

We hereby would like to notify the Shareholders of PT Pelita Samudera Shipping Tbk (“Company”) that Company will hold the Annual General Meeting of Shareholders and the Extraordinary General Meeting of Shareholders (“Meeting) shall be held on 28th April 2020.

According to article 21 of Article of Association of the Company and Indonesia Financial Services Authority Regulation No. 32/POJK.04/2014 dated 08th December 2014, Regarding the Meeting Plan and Activity, the invitation of Meeting shall be published on 6th April 2020 in 1 (one) national daily newspaper in Indonesian Language, Indonesia Stock Exchange Website, and Company’s Website.

The Shareholders are eligible to attend or represented the Meeting, whose names are recorded in the Register of Shareholders of the Company in Bureau of Securities Administration PT Datindo Entrycom on 3rd April 2020 at 16.00 WIB

The shareholders who are entitled to propose the agenda of the Meeting is 1 (one) shareholder or more who (collectively) represents 1/20 (one-twenty) of the total shares issued by the Company with valid voting rights.

The proposal of the Shareholders of the Company can be included in the agenda of AGMS subject to compliance with the requirement as stipulated in article 21 of Article of Association of the Company and Indonesia Financial Services Authority Regulation No. 32/POJK.04/2014 dated 08th December 2014 and shall be received by the Directors of the Company not later than 7 (seven) calendar date before the date of notice AGMS.

Jakarta, 20 March 2020

PT PELITA SAMUDERA SHIPPING TBK

The Directors

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PSS Assuring Continuity Plan on Covid-19 Pandemic

Dear Valued Customers,

Since the emergence of Covid-19, its impacts have been widespread and hard-hitting in Indonesia with 309 confirmed cases as of 19th March. To contain the risk to public health, as per recommendation from our President Jokowi “work from home, study from home and worship at home” thus starting 19th of March 2020, PT Pelita Samudera Shipping Tbk had embraced the directive.

We have divided our staffs in Jakarta into two teams, one working from home and the other from the office where they are swap on every alternate 2 days. Through this way we would still be able to continue servicing your needs at a professional level.

At our sites office in Samarinda, Banjarbaru, and Berau site, we are still working normal hours at the office until further development and directives from local government. For Samarinda site, to ensure we serve you continually, we have divided them into two teams and they work at two different offices. In short, all sites team, the staffs, and the crews, have been briefed and regularly socialized on how to do their job in a safe and professional way during this period.

We would truly appreciate that for the time being we would not be entertaining any visitors to visit our Floating Loading Facilities at the anchorage. In addition, if you already have the continuity plan in place, PSS will comply with any measures applicable to ensure continuity of your operations. As for Commercial team, we will abide by social distancing policy, however please be assured we are always be available through phones, skypes and MS Teams for discussion and problem solving.  

PSS would like to assure that the core business and service delivery to you remains unaffected, Continuity planning is also in place. We Value Our Customers and Strive For Excellent Service and Operations.

Should you have additional questions, our phone lines continue to remain open as normal. If you do wish to speak to us directly, please feel free to contact our Commercial and Operation team.

We wish you, your families, and your staff good health and safety.

Harry Chan

Director Operation and Commercial

PT Pelita Samudera Shipping Tbk