Publicly listed shipping company PT Pelita Samudera Shipping secured US$19.8 million worth of long-term contracts in the first half as its profit halved amid slumping international trade.
The contracts included a $3.3 million deal with state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum), according to the company’s statement on Tuesday.
“A contract worth almost $3.3 million was signed in June to ship Alumina from Kendawangan in West Kalimantan to Kuala Tanjung in North Sumatra using Handysize bulk carriers,” it reads.
The company also secured a five-year charter contract extension for its Floating Loading Facility (FLF) with PT Asian Bulk Logistics and a tugboat charter with PT Dian Ciptamas Agung.
At the same time, the company reported a 50 percent annual decline in its net profit in the first half of the year to $2.2 million. Pelita Samudera also posted a 2 percent year-on-year (yoy) revenue decline to $35.5 million, which it attributed to the operation of newly bought ships.
“All four bulk carriers that we bought in 2019 have been fully operational this year, supporting the increase of charter revenue by 87 percent yoy to $6.6 million in the first half from $3.5 million in the same period last year,” the company said.
The company's stocks, traded on the Indonesia Stock Exchange (IDX) under the symbol PSSI, remained unchanged as of 10:30 a.m. on Wednesday as the main gauge, the Jakarta Composite Index (JCI), retreated 0.1 percent. The company’s stocks have lost 9.7 percent of their value this year.
Indonesia’s sea freight industry suffered a double blow in May as falling international trade and a global oil price slump put pressure on shipping demand, according to the Indonesian National Shipowners Association (INSA).
The association reported that container shipping revenue had fallen by between 10 and 25 percent from normal levels. Revenue from bulk carriers, such as tankers, tugs and barges, had dropped by between 25 and 50 percent.
State-owned port operator PT Pelabuhan Indonesia (Pelindo) III previously announced an 8 percent annual decline in overall ship traffic and a 10 percent annual slump in freight shipping traffic in the first half of 2020.
Pelindo III expectes a 9 to 15 percent annual decline in shipped goods by the end of 2020, from the 75 million tons of goods that were shipped last year.