Trada Maritime up 27% on market debut

Thu, 09/11/2008 10:59 AM  |  Business

JAKARTA: Shares of local shipping company PT Trada Maritimes surged 27 percent Wednesday in its debut on the stock market on news its profits are set to double next year.

Shares rose to Rp 159 (1.7 US cents) at closing, with the company offering 45.81 percent of its shares at Rp 125 a share under the initial public offering (IPO).

Trada, which provides shipping-related services to oil companies, expects its net profit to rise on its expansion plans -- to US$30.1 million by 2009, up from this year's target of $13.1 million.

The company plans to spend $315 million to purchase additional vessels over the next five years.

Investors responded positively to the plan as crude oil prices recovered from a week-long slump Wednesday, with Brent crude back above $100 a barrel in the wake of OPEC's decision to cut production by more than 500,000 barrels a day.

Trada posted sales of Rp 219.66 billion last year, up from Rp 188.3 billion the year before, while net profits rose to Rp 37.10 billion from Rp 33.94 billion.

During the first quarter, the company recorded sales of Rp 68.2 billion and net profits of Rp 27.8 billion. -- JP

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