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hipping company PT Humpuss Intermoda Transportasi is preparing to participate in several domestic projects in an attempt to end recent business setbacks, caused in part by a legal case relating to shipping leases.

Humpuss business development director Permadi Soekasah said that the company planned to bid for several projects on liquefied natural gas (LNG) and chemical tanker procurements as well as LNG support, harbor tugs and oil support projects in the country.

The projects would need total investment of US$120 million, according to Permadi.

“We are assessing how to raise the funds, both from domestic and overseas sources. We are also open to collaborations with local and foreign strategic partners,” Permadi said.

He added that any strategic partnership would likely take the form of a joint venture. “The company is in talks with several potential partners, including from Hong Kong and Singapore,” Permadi said.

Raising funds from bank loans or bond offerings in this highly competitive bond market would be difficult for the company, according to president director Theo Lekatompessy.

“Bankers have a different [negative] perception toward the shipping industry. Therefore, besides bank loans, we are looking for partners and seeking projects that will offer clear income,” Theo said.

Humpuss is one of several companies that became caught up in a legal dispute relating to debt-settlement with creditors.

Humpuss has just agreed a debt-settlement plan following a legal appeal over the postponement of debt payments. The appeal was submitted by one of the company’s creditors, concerned that Humpuss would be unable to pay its obligations as previously planned due to spending most of its revenue on settling a dispute over the early termination of a lease agreement involving its now bankrupt subsidiary, PT Humpuss Sea Transport (HST).

Under the approved settlement plan, Humpuss will pay all its creditors in different forms, including cash payments, and debt and equity swaps. The company also included a payment amounting to US$52.8 million to HST liquidators in the settlement plan, although it was not obliged to do so. The liquidators — Cosimo Borelli and Jason Kardachi — have said they opposed the settlement plan and would continue to take legal steps against Humpuss.

The expensive legal case with the HST liquidators, which began in 2009, has contributed to the company’s poor economic performance.

The company was now focusing on ensuring the health of its subsidiaries and its own revenues, and it expected a better financial performance in the near future, Theo went on.

The company is projecting that its revenue will touch Rp 637 billion (US$66.1 million) by year-end, increasing about 58 percent compared to Rp 403 billion in 2011. Meanwhile, its net profits are expected to be around Rp 2 billion, a significant increase as the company had net losses of Rp 281 billion in 2011.

Humpuss finance director Budi Haryono said the company aimed to reap Rp 750 billion in revenues and Rp 50 billion in net profits next year.

“Company growth will be supported by its seven core [businesses],” Budi said.

The seven businesses comprise LNG transportation, oil transportation, LNG support, bulk transportation, freight containers, crew management and a shipping agency. LNG, bulk and oil transportation contribute most to the company’s overall revenue.

—JP/ Raras Cahyafitri