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Samudera Shipping sees full year profit dive 71%

Samudera Shipping sees full year profit dive 71%
Samudera Shipping has seen its full year 2015 profit plunge compared to the previous year on decreased revenue and impairment charges.

In the financial year ended 31 December 2015, Samudera Shipping recorded a profit of $4.17m, a dive of 70.8% from the gain of $14.28m in 2014.

The Indonesia-based shipowner’s annual revenue fell by 12.8% year-on-year to $317.68m due to lower contributions from its container shipping, bulk and tanker businesses.

The bottomline of Samudera Shipping was also impacted by a $13.7m impairment on five Indonesia-flagged container vessels and two dry bulk carriers, pushing up its other operating expenses in 2015 to $13.78m from $3.51m in 2014.

“The group expects industry challenges to persist in the container and bulk and tanker sectors in the ensuing months,” Singapore-listed Samudera Shipping said.

“Competition is expected to remain intense due to weaker growth in global trade. Industry players are making effort to manage the oversupply situation by cancelling or postponing newbuilding orders and scrapping old tonnage,” the company commented.

The company added that it will rejuvenate its fleet by monitoring the market closely for the right time to dispose some of its under-performing or aging vessels, and acquire or charter in younger vessels.