Samudera Shipping Line has reported earnings of US$101.2 million, down 68.6% y-o-y for FY2023, on the back of a 41.2% drop in revenue to US$582.9 million.
In line with the lower bottom line, Samudera plans to pay a combined final and special dividend of 9 cents, which will bring the total FY2023 payout to 11 cents.
In contrast, it paid a total of 32 cents for FY2022, when the company enjoyed extraordinary profit on the post-pandemic spike in shipping rates and demand.
The Indonesia-based shipping line attributes the lower numbers to “significantly lower freight rates specifically in the container
shipping segment.”
In its earnings commentary, Samudera Shipping warns that the operating conditions in the container shipping industry are expected to remain challenging, amid disruptions to vessel availability and port congestions wrought by the Red Sea conflict.
“The group thus expects freight rates and vessel charter rates to be volatile in the near term,” says Samudera Shipping.
Meanwhile, stronger demand for bunker fuel as vessels reroute to bypass the conflict is expected to put upward pressure on bunker costs,” the company adds
Samudera Shipping shares closed at 71 cents on Feb 27, up 2.9% but down more than 40% in the past 12 months.
Source: Hellenic Shipping News
