PRESS RELEASE – PSS TO ADD HANDYSIZE VESSEL AND TUGBOAT AS PART OF FLEET EXPANSION PROGRAM

PSS TO ADD HANDYSIZE VESSEL AND TUGBOAT AS PART OF FLEET EXPANSION PROGRAM

 

  • New fleet investment reach about US$2 million (IDR29.4 per share)
  • All fleet investment in 2018 internally financed courtesy of strong cash flow and asset optimization strategy
  • Targeting at about between US$40 million to US$50 million for organic capital expenditure target in 2019

 

 

JAKARTA, JANUARY 9, 2019

 

PT Pelita Samudera Shipping Tbk (“The Company”, “PSS”, IDX code: PSSI)  announced the signing of two (2) Sales and Purchase Agreements (SPA) for 1 unit of Handysize class Mother Vessel (MV) and 1 unit of Tugboat.

 

PSS had completed the handover of both units at the end of 2018, as such the Company ended the year with total fleet of 80 units, consisted of 38 units of Tugboat, 37 units of Barge, 3 units of Floating Loading Facility (FLF) and 2 units of Handysize MV compared to 77 units in 2017.

 

 

This additional fleet displays the Company’s continued commitment to serve larger customer base and explore new logistics market potential in Indonesia as the Government is ramping up its maritime-based infrastructure such as construction of some new sea ports, the rise of Indonesia’s mineral processing industry, and PLN’s additional power utilities which will create potential demand for the Country’s logistics industry.

 

 

All investment in 2018 internally financed

The Company invested about US$9.7 million for 1 unit of Handysize MV (32,000 dwt) (including additional equipment and reflagging) and named the new MV “Dewi Ambarwati”. The investment for 1 unit of Tugboat (2×1,200 hp) named “JKW Mahakam VII” to add to the shortage of fleet due to high demand for coal transportation.

 

Thanks to the Company’s strong cash flow and asset optimization strategy, PSS is yet to use any external funding for its fleet investment in 2018.

 

Note that the Company spent about US$9.6 million for capital expenditure (capex) in the nine months of 2018 (including dry docks); hence, the additional MV and tugboat units will lift the year-to-date (YTD) capex to about US$19.8 million from about US$15.7 million in 2017.

 

 

PSS plans to spend capex of between US$40 million to US$50 million in 2019, particularly for tugboat and barges as well as mother vessel purchases, subject to the market development and condition.

 

 

To support this year’s expansion program, PSS has prepared strategic plan to optimize its balance sheet capacity aligned with the Company’s target of creating sustainable growth and higher shareholder’s added values.