Samudera Shipping posts 2H net profit of US$91.8 million on high freight rates

The Indonesian-controlled but Singapore-listed company posted second-half net profit of US$91.8 million. PHOTO: SAMUDERA INDONESIA/FACEBOOK

SINGAPORE - Listed container ship operator Samudera Shipping Line reported strong results for the full year to Dec 31, thanks to sky-high freight rates due to global supply chain congestion and capacity shortage.

This enabled it to pay a special dividend of 12.75 cents per share on top of a final dividend of 0.75 cents. That takes total dividends paid for the year to 14.25 cents after including an interim dividend paid earlier in the year.

The Indonesian controlled but Singapore-listed company posted second-half net profit of US$91.8 million (S$124.4 million), up from just US$74,000 in the same period in 2020.

Second-half revenue came in at US$317.9 million, up 84 per cent on the US$173.1 million recorded a year earlier.

The company posted net profit of US$128.6 million for the 12 months to Dec 31 compared with US$7 million a year earlier. This came on the back of a 52 per cent surge in revenue to US$527 million, from US$347.9 million.

Earnings per share were 23.9 US cents, or 32.6 Singapore cents.

"The severe congestion at ports around the world, along with the resulting network and supply chain disruptions and capacity shortage, is expected to persist throughout most of 2022," the company said.

"This will continue to exert upward pressure on freight rates amid the ongoing pandemic. Demand for shipping services should remain robust with the gradual reopening of economies globally."

The results saw the company's cash and bank balances balloon to US$187.2 million, from US$80.8 million a year earlier.

Net asset value per share rose to 59.2 cents.

The stock closed flat at 57.5 cents on Thursday.

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