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Samudera profit falls despite improved Indonesian container business

Samudera profit falls despite improved Indonesian container business
Singapore: Indonesia-based Samudera Shipping Line suffered a two-third fall in net profit in the third quarter despite growth in Indonesia's domestic container shipping business.

The regional shipping firm recorded third quarter profit of $1.26m, down 66% from $3.71m in the same period of last year. Revenue rose marginally to $118.43m from $116.87m.

“The revenue increase reflects higher contribution from the regional container shipping and Indonesia domestic container shipping segments, despite a drop in revenue for the bulk and tanker business,” Singapore-listed Samudera said.

“The group's Indonesia domestic container shipping segment should continue to experience healthy demand, in view of a resilient Indonesian economy. On the flip side, it will continue to face the challenges of port congestion and the change in fuel price policy as implemented in the country,” it said.

The Indonesia domestic container shipping business recorded a 9% increase in revenue to $15.5m as total container volume handled rose 12% to 41,000 teu, from 36,000 teu in the third quarter of 2011.

Samudera said it will remain focused on optimising its fleet utilisation and improving its operational efficiency, and implement bunker surcharges where possible and engage in bunker hedging at appropriate times to defray high bunker prices.