SAMUDERA WARNS OF LOWER PROFIT
Samudera Shipping Line Ltd., the Singapore-based regional and feeder shipping line, warned that it now expects its net profit after tax for the full year ending Dec. 31 to drop an estimated 60 percent, as compared to last year.
“This estimate is further subject to the U.S. dollar to Singapore dollar exchange (rate),” the company added. If the Singapore dollar strengthens against the U.S. currency, this will have an adverse impact on the result.
“The weakening of the global economy … worsened by the Sept. 11 incident resulted in less export and import cargo,” Samudera said.
This condition is not followed by market space rationalization, causing tougher market competition, it said. “To maintain the volume, the group has to lower the profit margin.”
Group revenue is expected to grow mainly due to an additional tanker ship and additional surcharges charged to customers, the Singaporean carrier said. “These surcharges are basically cost recovery and therefore would not help the bottom line.”
Samudera is a major container shipping feeder operator in Southeast Asia.