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PELITA SAMUDERA SHIPPING REMAINS RESILIENT TO MAINTAIN POSITIVE GROWTH AMIDST GLOBAL DYNAMICS OF 2020

 

Jakarta, March 2, 2021

Pelita Samudera Shipping (IDX:”PSSI”) reported Total Unaudited Revenues as of December 31, 2020 of USD 68.4 million (approximately IDR 0.96 trillion), or a decrease by approximately only 9% from the same period last year of US$ 75.3 million. The COVID-19 pandemic had adversely affected the overall performance of 2020, nevertheless, the Company resiliently maintained its positive growth amidst the low coal demands as well as price volatility of other global commodities.

The achievement was among others contributed by an increase in 2020 Time Charter Revenues (unaudited) by 35% to USD 13.3 million from USD 9.9 million in 2019, with the highest growth in the Tug & Barge (TNB) segment, followed by Bulk Carrier Motor Vessel (MV) and Floating Loading Facility & Floating Crane (FLF/FC).

Several new contracts and long-term contract extensions were achieved, and in total the Company has secured approximately USD 164.6 million worth of contracts. By the end of 2020, the composition of long-term contracts for FLF/FC reached 96% and 4% spot basis, TNB reached 88% for long-term contracts and 12% spot basis. On MV segment, out of 6 units, 3 units have secured long-term time charter contract and 3 units on freight charter contract (volume basis).

The realization of unaudited 2020 capital expenditure (capex) was at USD 9 million mainly disbursed for fleet docking and maintenance expenses. No additional fleet unit purchase was performed in 2020 as the Company strategy to optimize existing asset utilization amidst the weakening export and domestic markets.

Until the end of 2020, the Company fleet utilization recorded an average of 83.6% for TNB, 63.8% for FLF/FC and 83.5% for MV. Four units of MV purchased in 2019 have been all operated in 2020 and have penetrated into international market by shipping voyages to China, Taiwan, Vietnam, Singapore and the Philippines. Full utilization and almost 25% multi-cargo expansion of our MV fleet for non-coal commodities such as nickel, alumina, copper concentrate, clinker cement, silica sand, steel billet and iron products are among the target of the Company business diversification. TNB segment has also diversified into nickel transport.

While the capex for 2021 is allocated at USD 21 million which the Company plans to acquire additional 1 unit of Supramax-size MV and several units of tugboat and barge to continue exploring potential new logistics markets including non-coal.

PSSI President Director Iriawan “Älex” Ibarat stressed that in addition to the diversification strategy of transport commodities, the coal market will still be the focus for it still has excellent prospects in the future, estimated target at 70 – 80% in coal transport. The Company’s performance to continue generating profits, while maintaining a small debt ratio, is an achievement to be noted. “Although declining like other industries in general. However, the Company still generated a fairly good net profit through 2020 difficult situations with stable cash cost and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) margin at 35%, a similar performance with 2019. The trust expressed by recognized banks in supporting our fleet assets expansion plan is also proving that the Company has shown good performance,” explained Alex.

The Revenue growth is targeted to increase by 10 – 15% in 2021 to estimated USD 75 – 80 million with asset optimization strategy, business diversification, asset expansion and increase market share to international market. Similar with 2020, Time Charter Revenue will still be the key revenue growth, besides the increase of transport volume, which in 2020 reached 24.9 million metric tons with a growth target of around 10 – 12% in 2021.

Information regarding PSSI 2020 financial position will be published after the completion of audited financial statement in March 2021.

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