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Samudera Shipping improves Q2 profit amid headwinds

Indonesia’s Samudera Shipping Line has recorded higher profit for the second quarter amid the ongoing industry headwinds marked by supply-demand imbalance and low freight rates.

The regional container line recorded a second quarter net profit of $2.05m, an improvement of 8.8% from the gain of $1.89m in the same period of last year.

The quarterly revenue also rose by 7.4% year-on-year to $71.22m on the back of higher contribution from its main container shipping business segment.

The company’s container shipping business saw an increase in volumes handled from 298,100 teu in the first quarter of 2016 to 306,700 teu in the second quarter of 2017.

“The regional container shipping industry continues to face headwinds amid capacity and demand imbalance. Competition for cargo remains strong, resulting in intense pressure on freight rates, whilst bunker prices are expected to continue its rally in the near term,” Singapore-listed Samudera Shipping said.

Revenue from its smaller bulk and tanker business segments declined on the back of a smaller tanker fleet but the decline was partially mitigated by an improvement in vessel employment days and charter rates of the bulk carrier fleet.

“The group will continue to focus on maintaining its competitiveness in regional waters, while optimising asset utilisation and operational efficiency to strengthen itself for the challenge ahead,” the company commented.

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