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PELITA SAMUDERA SHIPPING MAINTAINED STABLE MARGIN THROUGH CHALLENGING 2020

PELITA SAMUDERA SHIPPING MAINTAINED STABLE MARGIN THROUGH CHALLENGING 2020

 

Jakarta, April 26, 2021

PT Pelita Samudera Shipping Tbk (IDX:”PSSI”)

in 2020 focused on diversifying multi-cargo transport commodities to penetrate potential market share including international markets. The Company’s strategy was to optimize the utilization of assets owned in the midst of the downturn of export and domestic markets due to Covid-19 pandemic situation that was depressing the global industry, especially the falling demand of coal commodity.

The Company managed to post Total Audited Revenue as of December 31, 2020 of US$68.4 million (equivalent IDR 0.96 trillion), or a decrease by only 9% from the same period in 2019 of US$ 75.3 million, with average freight rate increased by 10% to US$2.74/metric ton from US$2.49/metric ton in 2019 and booked a total volume transport of 24.9 million metric tons. President Director of PSSI Iriawan “Älex” Ibarat emphasized that ‘’Time Charter Revenue increased significantly by 35% to US$13.3 million from US$9.9 million in 2019, experienced an increase in all business segments, Floating Loading Facility (FLF), Tugs and Barges (TNB) and Bulk Carrier Motor Vessel (MV),” explained Alex.
Cost of Revenue decreased slightly to US$55.9 million from US$56.2 million in 2019, mainly contributed by the increase in fleet depreciation expense but offset by lower fuel expense. Alex continued, ”in the midst of the decline of coal market, the Company spent majority of repairs and fleet maintenance (docking) in the first semester so as to pursue the demand of transportation volume in the second semester, as evidenced by the strengthening of coal prices towards the beginning of fourth quarter in 2020.” The Company recorded a Gross Profit margin of 18% or US$12.5 million. EBITDA margin was achieved at 35% or US$24.3 million, indicating a fairly stable cash cost from 2019 margin at 40% or EBITDA of US$29.9 million.
The full utilization and multi-cargo expansion of Bulk Carrier Motor Vessel (MV) reached almost 25% for freight charter transportation volume of commodities outside coal such as nickel, alumina, copper concentrate, cement clinker, silica sand, steel billet and iron products. In mid-2020, Tugs and Barges (TNB) expanded into nickel segment, especially in the Southeast Sulawesi area and opened a representative office in Kendari at the end of fourth quarter of 2020. Expanding market share and asset optimization helped PSS to report a Net Profit for the Period of US$8.4 million as of December 31, 2020.
The Company built a strong financial position with Total Assets increased by 3% YoY to US$146.8 million from US$143.2 million and Total Equity increased by 7% YoY to US$94.5 million from US$88.6 million, mainly contributed by increase in Retained Earnings by 18% to US$39.4 million as of December 31, 2020 from US$33.4 million from December 31, 2019. In the same period, the Company posted Cash and Cash Equivalents of US$14 million (including Restricted Cash of US$1.3 million).
Debt-to-Asset Ratio and Debt-to-Equity Ratio were 0.24 times and 0.37 times respectively, lower from 2019 at 0.28 times and 0.45 times respectively, contributed by full repayment of UOB long-term bank loans as well as principal installments of ICICI and Citibank bank loans with total loan repayments of US$30.5 million. The bank loan repayments also contributed to a better Gearing Ratio position of 0.22 times vs. 0.37 times in 2019. This financial position shows that the Company has a well-maintained capital structure and solid financial position. Price Earning Ratio also increased at 7.7 times vs. 5.3 times from 2019.
Alex concluded, ”With PSS securing contract value of US$164.6 million in 2020 for new contracts and long-term contract extensions in the next 1 – 3 years, we are optimistic that we will grow strong with business diversification, asset optimization and fleet expansion as sustainable strategies.” The allocation of capital expenditure in 2021 is targeted at around US$21 million mainly for fleet expansion strategy. ‘’The target of Revenue growth in 2021 is to increase by about 15 – 20% from 2020, with a target higher than 2019 or pre-pandemic.”
Information regarding PSSI financial position as of December 31, 2020 based on Audited Financial Statements.