Mainboard-listed Samudera Shipping Line has posted net profit of US$41.8 million for 1HFY2025 ended June 30, doubling y-o-y.
This comes on the back of a 28% y-o-y increase in revenue to US$285.5 million, mainly driven by increased business activity and container freight rate improvements. This outpaced a 19.7% y-o-y rise in cost of sales.
For 1HFY2025, earnings per share rose to 7.77 US cents from 3.88 US cents in 1HFY2024.
The Board of Directors has declared an interim cash dividend of 1.5 cents per share for 1HFY2025, up from 1 cent per share in 1HFY2024. This will be paid in Singapore dollars on Aug 21, and the ex-date is Aug 13.
Property, plant and equipment amounted to US$273.2 million as at June 30, compared to US$275.7 million as at end-2024.
The group held cash and bank balances of US$382.6 million as at June 30, higher compared to the US$374.5 million held as at end-2024.
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The group says in financial statements that it expects the operating environment for the container shipping industry to remain challenging in the near term.
“Globally, container freight rates have begun to moderate from earlier highs, following a period of frontloading of cargoes. Further softening of freight rates is expected, in view of the progressive implementation of US tariffs across various countries and ongoing geopolitical tensions in the Middle East,” adds the group.
“While the impact of these shifting global demand patterns on regional trade lanes is uncertain, the prevailing tightness in vessel supply could provide some support to freight levels. Charter rates for container vessels should stay firm, given limited availability of charter tonnage and a newbuild pipeline stretching into 2027 and beyond,” according to Samudera.
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In addition, resale prices for recently built vessels are expected to command a premium, adds the group.
Shares in Samudera Shipping Line closed 0.5 cents lower, or 0.5% down, at $1 on July 29. The counter has risen more than 21% year to date.
