Samudera says bunker prices remain a concern
Samudera Shipping Line Limited (Samudera) said in its latest earnings report released Tuesday that bunker prices "remain a concern" even as fuel prices stabilise, and also notes mixed signals for shipping companies, Ship & Bunker reports.
"Industry outlook remains cloudy for the rest of 2012, as sluggishness in the world's major economies continue to hamper the recovery of global trade activity," the Singapore incorporated company said.
Samudera said it will respond to fuel price concerns with hedging and by implementing bunker surcharges where possible.
The company, which serves the Middle East and Asia, said its domestic container shipping business in Indonesia should thrive as that country's economy rebounds, though it will also face port congestion and policy change that could raise fuel prices there.
Samudera said softening charter hire rates will hurt its profits, but its bulk and tanker business should provide a positive contribution, and its ship manning and operation services for the marine and shores business are also poised to do well.
"The Group shall also remain focused on optimizing its fleet utilization and improving its operational efficiency, while keeping a lookout for possible growth opportunities," it said.
For the three months ended September 30, 2012 the group had after-tax profits of $1.4 million, down from $3.9 million in the same quarter last year, while its revenues rose to $118.4 million from $116.8 million.
The company said it made more money from its Indonesian container shipping business but less from the bulk and tanker business over the quarter, while the cost of services rose due to higher bunker prices and the use of additional vessels.
