COMPLETED ADDITIONAL 1 UNIT OF MOTHER VESSEL, PSS SETS TO SUPPORT INDONESIA’S ENERGY CONSUMPTION GROWTH

COMPLETED ADDITIONAL 1 UNIT OF MOTHER VESSEL, PSS SETS TO SUPPORT INDONESIA’S ENERGY CONSUMPTION GROWTH

 

  • New fleet investment of 1 unit Handysize class Mother Vessel (MV) reached about US$9.7 million (about IDR27.2 per share)
  • Targeting at about US$50 million for organic capital expenditure (capex) in 2019
  • Indonesia’s  economic   growth   and huge domestic market will provide logistic opportunities for domestic power plants, fertilizer, cement, and metal and mineral industries

 

JAKARTA, JANUARY 30, 2019

 

PT Pelita Samudera Shipping Tbk (“The Company”, “PSS”, IDX code: PSSI) opened the new chapter of 2019 by announcing of new MV “Dewi Ambarwati”, a handysize class vessel as part of the Company’s expansion program in line with Indonesia’s increasing logistic demand for the energy sector.

 

With capacity of 32,000 dead-weight-tons (dwt), “Dewi Ambarwati” is the Company’s 2nd handysize vessel and has been chartered for coal shipment in Bunati area, South Kalimantan, starting since the first week of January 2019.

 

PSS completed the acquisition transaction of this MV by the end of 2018, paid entirely with internal cash, showing the Company’s sound liquidity and well-managed financial position.

 

Following this new MV PSS now owns a 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 class mother vessel compared to 77 units it owned at the beginning of 2018.

Organic capex at around US$50 million in 2019

PSS spent capex of around US$21 million (including dry docks) in 2018 compared to around US$15.7 million in 2017.

 

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

 

PSS plans to spend capex of around US$50 million in 2019, mainly for the purchases of tugboats, barges and mother vessels, funded by a combination of external and internal financing, subject to the market development and condition.

 

Currently, the Company maintains a well managed financial position, reflected on several ratios as below.

 

As of September 30, 2018, PSS had Gearing Ratio of 0.38x and Net Gearing Ratio of 0.23x with Debt-to-LTM EBITDA Ratio of 1.07x and Net Debt-to-LTM EBITDA Ratio of 0.66x.

 

Along with the Company’s capex needs in 2019, to secure its working capital needs, PSS has recently signed non-collateral loan facilities with Citibank Indonesia in both US Dollar and Rupiah amounted up to US$12 million (including standby LC).

 

Such loan facility reflects the bank’s high trust in the Company’s prospects and its financial strength.

 

Pursuing multiple logistic opportunities

Rising domestic logistic demand particularly for energy and mineral sector will be the Company’s main focus for 2019.

 

As such, PSS is targeting cargo volume of around 1.8 – 2.2 million metric tons in 2019 for its MV fleet, subject to market condition and ability for fleet additions.

 

The addition of bulk carrier is in line with the Company’s strategy to tap multiple logistic opportunities in the domestic market from energy, mining, agriculture to building material sectors.