The company engaged in sea cargo transportation, PT Pelayaran Tempuran Emas, Tbk (Temas Line) budgeted capital expenditure (capex) in 2014 at IDR250 billion for the addition of 4 new fleets and 2 used fleets. 20% of the investment comes from internal cash and bank loans.
The new vessels were purchased from China with a capacity of 10,000 TEUs (Twenty Foot Equivalent Units) and the used vessels from Japan with a capacity of 5,000 TEUs," said Finance Director of Temas Line, Ganny Zheng, in Jakarta, on Friday (June 6).
The reason the company ordered ships from China is because the price is relatively lower than other countries. The new ships will strengthen the company's fleet, and currently the company has a total deadweight tonnage (DWT) of 147,544 tons with a carrying capacity of 8,872 TEUs. Average carrying capacity of each ship of the company is 373.56 TEUs. The average age of ships owned by the company at this time is about 18 years.
According to Ganny, 2014 is a year "operational excellence" of the company by making asset investment to improve cost effectiveness. In addition to purchasing ships, the company will use the capital expenditure for the addition of stevedoring equipment in the consumer goods sector. Meanwhile, this year the company also will rejuvenate 5 ships. Among them, 3 ships are from China and the rest from Japan and Germany.
In addition to the purchase of ships, the company will use the capital expenditure for the addition of stevedoring equipment for the consumer goods sector. With the investment, Ganny expects that sales this year to rise 1 5% and net profit target IDR150 billion. Meanwhile, in 2013, Temas Line's sales rose 27.7% to IDR1.38 trillion, with net profit at 1DR70.8 billion, down from 1DR119.9 billion previously. Until the end of 2013, the company has operated 22 new fleets with a deadweight tonnage of 181,337 DWT and a capacity of 11,6004 TEUs.
While, in the first quarter of 2014, the company recorded revenue of IDR382 billion and net profit of IDR53.6 billion. "Container business depends on domestic growth. Last year, our economic growth was 5.3%, this year 5.8%. There is a contraction but we have prepared, among others, by doing ship rejuvenation to reduce costs. Averagely, companies like us experienced 10% - 15% growth, but if the economy grows, we could grow more", Ganny said.
The company expects to book a net profit of IDR150 billion in 2014. This figure increased quite significantly or reaching 111.68% compared to the net profit achievement in 201 2 at IDR70.8 billion.
According to Canny, the net profit increase will be supported by sales increase of 15% this year compared to sales in 2012 at IDR1.38 trillion. "We expect sales to rise 15% this year, so that net profit will also rise to IDR150 billion this year", said Ganny.
To support this target, Temas Line's management this year has set aside an investment fund of IDR250 billion. The funds will be used for the purchase of 4 new vessels and 2 used vessels and for operational support facilities. He hoped that with the addition of ships, it will further assist the company's business. Thus, there will be growth, both in sales and net income, this year, and the target can be achieved.
In 2013, sales rose 27.7% to IDR1.38 trillion, with net profit of IDR70.8 billion, down from IDR119.9 billion previously. Until the end of 2013, the company has operated 22 new fleets with a deadweight tonnage of 181,337 DWT and a capacity of 11,6004 TEUs.
In this Annual General Meeting,. it is agreed that the entire net income in 2013 would be used to repay loan, thereby reducing interest expense, increase business capacity, and strengthen working capital.
Mastono Ali, analyst of Valbury Asia Securities, believes that as a shipping company, Temas Line has a fairly unique consumer segment. Because the company is targeting transportation in the manufacturing and consumer goods sectors. In addition, Temas Line is the second largest cargo shipping company in Indonesia Thus, the opportunity of Temas Line is enormous. Because, there are no transport companies listed on the stock exchange which are targeting the shipping market.
Mastono predicted that TMAS performance is potential to grow rapidly before Lebaran and the end of this year. Because transportation in consumer goods sector will grow rapidly during that period. "It's like an annual cycle", he said. (E)
Business News - June 11, 2014