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ANNUAL GENERAL MEETING OF SHAREHOLDERS

SOLID PERFORMANCE AND AMPLE LIQUIDITY, PSS TO DISTRIBUTE DIVIDEND FOR SHAREHOLDERS

• Obtain shareholders’ approval for all of the meeting agenda
• Distribution of cash dividends of US$2.9 million or IDR 8 per share. Fifth dividends since IPO in 2017
• Additional long-term loan facility of up to USD13 million for long term funding
• Approval of Shares Buyback

PT Pelita Samudera Shipping Tbk (“The Company”, “PSS”, IDX code: PSSI) has held its Annual General Meeting of Shareholders (AGMS) of which all agendas are approved by shareholders.
First, shareholders approved the Company’s 2020 Annual Report with solid performance and strong growth in 2020 in the midst of the COVID-19 pandemic. The Company focuses on diversifying its multi-cargo transport commodity business, expanding its potential market business including internationally, and optimizing asset utilization.


The Company’s net profit at the end of 2020 was recorded at USD8.4 million. With the approval of shareholders, the Net Income will be partly used for a cash dividend of Rp8 per share that will be distributed on July 21, 2021. This dividend payment is the fifth since the Company listed its initial public offering in December 2017. The total dividend of Rp8 per share reflects 35% of net income in 2020 or USD2.97 million (equivalent to Rp43.3 billion). Meanwhile, USD421,000 (equivalent to Rp6.1 billion) or 5% was set aside for the Company’s reserve fund. The remaining net profit for the year was USD5.04 million or 60% recorded as retained earnings of the Company.

The Company has also approved the results of the Audit of financial statements for the fiscal year 2020 conducted by the Independent Public Accounting Firm Tanudiredja, Wibisana, Rintis, and Rekan (global network member firm Pricewaterhouse Coopers). For Fiscal Year 2021, the Company will delegate authority to the Board of Commissioners to appoint a CPA firm registered with OJK with criteria following applicable regulations.

 

The determination of salaries and benefits and other income for members of the Board of Directors and Board of Commissioners also obtained shareholder approval.

As part of continuous efforts to penetrate more into international markets, the Meeting also approved the addition of Members of the Board of Commissioners, namely by appointing Mr. Loh Niap Juan as a new member of the Board of Commissioners. Mr. Loh Niap Juan is the Chief Corporate Officer of IMC Group Singapore, part of IMC Group Corporate Strategy for portfolio investment, governance, and management. As a great practitioner of logistics and financial corporate strategy, Mr. Niap added to the diversity of the composition of the 4 members of the Board of Commissioners led by the Independent President Commissioner, Mr. Hamid Awaluddin, who previously served as Minister of Law and Human Rights in Indonesia Bersatu Cabinet.

Fleet expansion strategy is the Company’s target that has been carried out for the last five years. This move has increased the company’s assets significantly by 46% as of March 31, 2021, at US$148.8 million compared to US$101.8 million as of December 31, 2017. To support the company’s sustainable growth plan, the Meeting also approved a long-term loan facility of USD13.9 million (equivalent to Rp200 billion) with a tenor of up to four (4) years for long-term funding from Bank Permata Indonesia. This long-term loan is part of a sustainable fleet expansion strategy, one of which is for the purchase of three sets of Tugboat and Barge (T&B). In Q1/2021, the Company has completed the purchase of 2 units of Tugboat and immediately gave a positive result. T&B segment contributed the highest Revenue of US$8.7 million at the end of Q1-2021, including a very significant 1708% increase in Time Charter Revenue to US$2.3 million from USD125,000 in the same period last year.
The addition of the tugboat fleet is in line with the Company’s business diversification target, the T&B segment managed to obtain new contracts and expansion into bauxite transportation in the first quarter in the West Kalimantan area, in addition to the transportation of nickel and coal commodities. The target of diversification of multi-cargo transport other than coal is 29% from the MV segment of about 17%, and the T&B segment by 12%.

As the last agenda in the annual meeting is to approve the buyback of the Company’s shares as many as 300 million shares or 5.5% of the issued and fully paid-up capital, will be carried out gradually from June 17, 2021 – June 16, 2022. President Director, Iriawan “Alex” Ibarat said, ”Buyback is based on the Company’s cash flow that exceeds the amount required in sustaining the improvement and growth, a good level of a debt obligation(leverage) and aims to increase earnings per share, greater flexibility in managing long-term capital, achieving an efficient capital structure and a sustainable Return on Equity.”

Contributor: Hariman Chalid
Corporate Communication
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