Humpuss shipping unit settles debt deal

HITS, which is a unit of Tommy Suharto-linked Humpuss Group, reached an agreement on 4 December to repay its $141m debt to Athens through debt-for-asset and debt-for-equity swaps, local reports said.

HITS president director Theo Lekatompessy said 95% of the debt would be paid with assets belonging to its subsidiary, Singapore-based Humpuss Sea Transport (HST), while the remaining 5% would be paid with HITS shares. “This is a new day for us and we are ready for growth,” he was quoted as saying, adding that the settlement was a big relief for the company.

Theo said that the company would invest $650m next year, of which 52.3% would be for liquefied natural gas (LNG) shipping projects, 39.23% for offshore projects, and the remainder would be spent on oil-shipping projects and for a new cement-transportation business. “Some of the total investment will be in 19 new tankers and other vessels,” he said.

He said that HITS was aiming for around 30% revenue growth next year, up from this year’s target of IDR804bn ($66.07m). HITS will benefit from the strong US dollar as much of its shipping revenue is in this currency as well new income streams from delayed shipping projects and its new cement shipping service.