The Malaysian shipping company increased group profits by over 27 percent in the first six months of the year despite a 1 percent dip in overall revenues.
SITC International Holdings Company Limited increased group profits 27.3 percent to $71.3 million for the first six months of 2015 compared to the same period the previous year, according to the company’s most recent financial statements.
Revenues at the Malaysian shipping company, however, fell slightly to $651.2 million in the first half, a decrease of about 1 percent from the first half of 2014.
SITC reported basic earnings per share for the six months ended 30 June 2015 of $0.27 per share, up from about $0.22 cents per share the prior year.
The company’s sea freight logistics segment reported profits of $30.7 million in the first half, up 29.6 percent from 2014, on a 0.3 percent increase in revenues to $504.2 million. SITC attributed the results primarily to an increase container shipping volumes – from 993,989 TEUs in first half 2014 to 1,059,535 TEUs in 2015 – and a decrease in average container shipping rates – from $472 per TEU to $428 per TEU.
SITC’s land-based logistics segment, which provides integrated freight forwarding, shipping agency, warehousing, trucking and ship brokerage services in Asia, reported a 17 percent increase in profits to $39.1 million for the first half of the year on revenues that fell 1.9 percent to $371.6 million. Revenues from freight forwarding and shipping agency dipped 3.4 percent to $351.9 million, while the group’s other land-based logistics businesses increased revenues 35.7 percent to $19.7 million.
The revenue decline in its freight forwarding and shipping agency business was caused by a decrease in the average freight forwarding rate from $421.7 per TEU in the first half of 2014 to $391.9 per TEU in 2015, which offset the 2.4 percent growth in volumes to 784,416 TEUs for the segment.
Looking forward to the rest of the year and beyond, SITC said, “With the group’s continuous business expansion, the company will continue to optimize its unique business model and expand its intra-Asia service network. At the same time, the Company will continue to expand the Group’s fleet by capturing vessel price dynamics, so as to keep pace with the development of the business and secure a long-term competitive cost position.
“Through the above measures and together with the continuous enhancement on the Group’s information technology systems, the Company will strive for the goal in becoming a world-class integrated logistics service solutions provider.”
Although SITC reported no significant acquisitions or divestment of subsidiaries or associated companies, the company said it “will continue to purchase container vessels and/ or containers and invest in land-based logistic projects, as and when appropriate.”
SITC grows profits in first half 2015
