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OSV provider Logindo announces lower H1 net profit, revenues

JAKARTA (rambuenergy.com) – PT Logindo Samudramakmur Tbk, a company engaged in the shipping sector with focus on provision of offshore support vessels (OSV) for the oil and gas industry, announced its interim financial statement for the first six months (H1) of 2015. The company’s revenue for the first six months of 2015 reached US$25.6 million or 30 percent lower than the same period in 2014.

Although most of our vessel operating and overhead costs are fixed, coupled with higher financing charges, the Company still manages to record profit for the first six months of US$0.6 million.”

 

Chief Financial Officer (CFO), Sundap Carulli stated “Following the unstable global oil price and continuing weak market demand, our financial performance is adversely affected compared to last year.

“Lower revenue is mostly due to reduced average vessel utilization rate in the first half to 63 percent (from 77 percent in 2014). Particularly for high-tiered AHTS vessels, utilization rate only reached 42 percent compared to 82 percent in 2014. In addition, vessel charter rates were also lower especially during 2nd quarter; by 5- 10 percent for existing contract, and by 20-30 percent for new project or contract,” President Director, Eddy K. Logam said.

“We have taken concrete cost saving measures to handle the current challenges, among others by warm stacking idle vessels and reducing significant number of crew. Apart from that, we are implementing efficiency in our organization and spend so that our operating and overhead cost will be more lean,” Eddy added.

Eddy believes that this year will be challenging for oil and gas related industry, due to prolonged oil price cycle and delayed reformation in government policy for the oil and gas sector. Nonetheless, Eddy remains optimistic that there would be revival in activities and market demand at least towards the end of 2015.

“We have succeeded in obtaining a contract from ConocoPhilips worth US$ 3 million and with M3NERGY worth US$ 2.4 million which would commence during 4th quarter 2015. In addition, we are progressing a few new tenders for example with Husky CNOOC and Petronas , all of which would be prospective for the next year,” he said.

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