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Samudera Shipping profitable again, but expects challenging conditions
CONTAINER shipping firm Samudera Shipping reported a US$0.5 million profit for its third quarter ended Sept 30, 2017, compared to losses of US$3.8 million a year ago.
Revenue rose 14 per cent to US$69.7 million from US$61 million a year ago, driven by an increase in container volumes handled along with higher freight rates.
"The excess capacity that has previously hampered industry recovery is expected to remain. In addition, consolidation among our customers - namely the main line carriers in the container shipping business - is expected to change market dynamics," the firm said.
"With the uptrend in oil prices compounding the situation, the group anticipates market conditions to be challenging."
It added that it has partnered Malaysia's Shal Hawk Sdn Bhd in a joint venture to offer warehousing services at Port Klang. Construction of the warehouse is expected to be completed by the end of this year.
Samudera last traded at S$0.235, up one Singapore cent, before results were out.