Samudera Shipping

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(06-09-2021, 02:07 PM)opmi Wrote: I thought higher charter-in rates is bad for Samudera?  For some of their ships, they hire whole ships long and sell freight on spot, right?

Higher charter rates are good for ship leasing company like Seaspan.

Is high charter-in bad?

Ship owners has been enjoying elevating charter rate, which trailed skyrocketed freight rate charged by shipping lines (carriers).  

Unlike other carriers that own a portion of their fleet and charter the rest, ZIM charters its entire fleet.  ZIM has been adding fleet capacity, capitalising on the extreme high spot rate.

The below link offers some good insight on this matter
https://hk.finance.yahoo.com/news/supply...18390.html
A forward-looking question on ZIM's strategy: What happens when spot freight rates eventually fall and the company continues to face very expensive lease obligations from multiyear charters signed at the market peak? ZIM has outperformed larger players in 2021 by trading increasingly longer-term lease obligations for higher near-term spot-rate exposure, but ship charters don't just drive current earnings, they drive future liabilities that must be paid for with future freight-rate income.

Samudera
Demand is higher than supply.  How to increase capacity?  a) Improved turnaround ie trips b) add vessels via buy (new built or used) c) add vessels via charter

a) Not much traction in spite of better planning and co-ordination due to port congestion.
b) New built take time about 2-3 years waiting. Used vessel may not be operational efficient.  More importantly the buying price is very high.
c) Samudera is opting for charter-in with a combination of short and long term charter period

Samudera fleet capacity is 72% chartered.  It has to continue its charter or else lose capacity.  Highly unlikely for carriers to reduce capacity at such time - The worst times for shippers and the best times for shipping lines

High market price for used vessel
https://splash247.com/lauritzen-bulkers-...fic-basin/
A poorly condition 9 years old bulker was sold at a very firm $20m. The ship has doubled in value in a year.  This article is on a bulker, but I believed the same situation pretty much apply to containership.
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A good read on the link...expecting higher profit for 2nd half...as stated by squirrel in the earlier message

https://indoshippinggazette.com/2021/sam...this-year/

Some of the chartered ships are from the parent company. In their latest commentary the company expects to chartered 2 more ships in 2022. My guess is that the ships are most probably built and expected to be delivered to Samudera Indonesia in 2022. Why is the parent company buying ships and not Samudera...my guess is the cabotage rule. With the us$115m ( incl the proceeds from sale of ship that was announced in July) Samudera is using part of the cash to invest in Indonesian shipping company that ply intra-shipping in Indonesia ( because of cabotage?)

Interesting part is that the parent company is taking up on debts buying ships while cash sits on Samudera.....
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Amazingly samudera gonna make a lot of money this year....


Geographically, bulk of the company's revenue are from Indonesia and Southeast Asia

The sub-reading for the Southeast Asia Service led the gain with a week-on-week rise of 7.4 percent.
https://www.hellenicshippingnews.com/chi...dges-up-7/


Up another 3% for the week
https://en.sse.net.cn/indices/seafinew2.jsp

% increase in rates meant higher rates of increase in profits as costs esp fixed cost does not change in a short term

https://splash247.com/maersk-revises-ann...war-chest/
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Samudera Indonesia 3q result is out.

My rough estimate is 3q earnings for samudera shipping is almost 1q and 2q earnings combined..

To summed it..... Samudera Indonesia earnings for 9 months is us$77.9m while earnings for 1st half is us$37.3m
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Those who saw Samudera Indonesia result are Happily buying and those who don't are also 'Happily' selling.....

Who will have the last laugh......

http://investideas.net/forum/viewtopic.p...9&start=70

The latest freight rates for southeast Asia which Samudera is in


https://en.sse.net.cn/indices/seafinew2.jsp
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Shipping has always been cyclical and likely remain so. I am vested in SSL and everyday I am asking, how long can this round last, will there be a new norm, and what is this new norm?

SSL likely will give out more dividends than past for this FY (already given 1H dividends, even if very tiny amount). My question is what will they do with the huge amount of cash (and more coming in). I hope they keep more of the cash and invest for a new norm.


Below is news article from Indonesian news Bisnis on parent SMDR recent 3Q results. I paste the google translated text.


https://market.bisnis.com/read/20211102/...makin-baik


Samudera Indonesia (SMDR) Optimistic for Better Performance in Quarter IV/2021

SMDR revenue in the third quarter of 2021 reached US$ 443 million and net income of US$ 51.5 million. It's much better than last year

Bisnis.com , JAKARTA – Shipping issuer PT Samudera Indonesia Tbk. (SMDR) recorded a positive performance in the third quarter of 2021, driven by an increase in commodity demand. The President Director of SMDR Bani Maulana Mulia said that Samudera's performance was very good until the third quarter of 2021. “ Our revenue reached US$ 443 million and net income US$ 51.5 million. This is much better than last year, and also better than the second quarter of 2021," he explained to Bisnis , Tuesday (2/11/2021).

In the fourth quarter of 2021, Bani said SMDR would add new services and routes, and operate new ships that were more efficient.
"In the current market conditions, we are optimistic that we will achieve better results until the end of 2021," he added. Meanwhile, the increase in demand for commodities has a positive effect on, because the high demand makes reliable services increasingly needed by customers.

Previously, SMDR scored a skyrocketing net profit growth throughout the first half of 2021. Based on its financial report as of June 30, 2021, the issuer codenamed SMDR scored a profit for the period attributable to owners of the parent entity of US$23.63 million, up 379.99 percent compared to $4.92 million in the first six months of last year. This soaring profit resulted from service revenues which rose 10.67 percent to US$274.08 million in the first semester of 2021 compared to US$247.65 million in the first semester of 2020. Thus, SMDR's profit for the period became US$37.34 million in the first half of this year, up from US$7.65 million in the first six months of last year.
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https://en.sse.net.cn/indices/seafinew2.jsp

Rates up quite a lot.

We might see a higher 4q earnings than 3q
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https://en.sse.net.cn/indices/seafinew2.jsp
You can find more of my postings in http://investideas.net/forum/
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