Monday, October 27, 2014
Samudera Shipping Line
Samudera Shipping Line: The Edge notes that Samudera has been busy streamlining its operation in a bid to stay relevant. Besides container shipping, Samudera also specialises in bulk cargo, including liquid and gaseous goods. Amongst other things, the company has downsized operations on loss-making routes and gotten rid of non-performing vessels. The latest 3Q14 results show that its efforts are paying off, with net profit of US$5.2m reversing from a net loss of US$0.2m a year ago. Revenue however, fell 9.5% y/y to US$88.2m, due to competition in Indonesia (its main market) from newer, fuel-efficient vessels. Still Samudera managed to shore up its cash flow, doubling its cash pile to US$33.4m from a year ago. Despite hitting a recent high of $0.18, the stock remains valued at a deep discount to its latest book value of US$0.457 per share.