Dear Shareholders and Stakeholders,
In 2017, marine transportation business has improved although not significant. There was a slight improvement in the dry bulk freight along with the increasing price of coal in global markets that led to rising coal mining activities. This improvement is expected to continue so as to restore the glory of sea transport, particularly in the dry bulk freight sector.
The Board of Commissioners monitors the Company’s management conducted by the Board of Directors throughout 2017 and provides an assessment that the performance of the Board of Directors as a whole is good. Strategy and business policies applied give positive results for the Company's growth. Some things that describe the performance of the Board of Directors are described below:
- The profit for the year very high in 2017, US$10 Milllion, reaching almost 2 times of the profit for the year in 2016, US$5.3 Million. When compared with 2015, the profit for the year growth in 2017 reached about 300% from its profit for the year in 2015. In the last 3 years, the achievement trend of profit for the year in each year experienced a significant surge.
- Total Assets at the end of 2017 increased by 6.34% compared to the previous year, from US$165 Million into US$175,5 Million. Similarly, Equity increased by 18.57%, from US$35 Million into US$41,5 Million.
- The operational activities of the vessel is generally quite good. The utilization rate of the carrier vessel of LNG, chemical, and oil throughout 2017 reached average of 90.7%, higher compared to the utilization of the vessel in 2016, amounting to 87.5%.
- Vessel utilization for transporting bulk cargo (tug & barge) at the beginning of the year was still sluggish. However, in the mid-year, it started to rise so that almost all of the vessel were utilised in the last quarter of 2017.
- The Board of Directors and the Company received appreciation in the form of awards from several sources. Awards received during 2017 include: Most Sustainable Growing Company in the Oil and Gas Transportation Industry in 2017 from Bisnis Indonesia Awards, Supporting Inclusive Growth in 2017 (The Best Listed Companies) from Investor Awards, Indonesia Best Issuer in 2017: Infrastructure, Utilities and Transportation from Warta Ekonomi, Best Indonesian Tbk Company in 2017, sector: Infrastructure - Utilities & Transportation from Economic Review, and The Best Indonesian CEO: Public Companies 2017 from Economic Review.
- The Company successfully developed the business with new investment. The procurement vessel conducted in 2017 are:
- Investment in new vessel types, Dredging. These investments are expected to boost revenue and net profit in 2018, and so on.
- Investment in Sinar Jogya vessel which purchased simultaneously with Oil Transportation contract.
- Investment in Prosperous vessel or KM Griya Jawa amounted to US$9.9 Million. This is the GP vessel utilized to transport the oil.
- Other activities that support the Company's business is, manning and training. The manning is fairly stable business units, generating continuous income. While, the training business segment for sailors is poor for most of the year due to the impact of government programs on free (no cost) marine training for 1 million people. However, at the end of 2017, there was a significant increase in the number of participants.
View on Company Business Prospects
The business activities of the Company during 2017 include hauling LNG, LPG, Oil, Chemical and Offshore Support Vessel. This business is strengthened with business activities in the field of manning and training. With existing business units and operation in the political economic growth rate of about 5%, the Company has successfully run the business and gained double profit of the 2016 earnings.
The next two years, 2018 and 2019, are also years of even tougher political levels, due to unison for elections of Head District and National Elections as well as the Presidential Election. Although the Company will face a tough year, the Board of Commissioners has confidence that the Company still has positive growth prospects.
The Board of Commissioners is optimistic that the Company will grow better in 2018, through the maintenance of vessels (Plan Maintenance Systems) that is well run, and the implementation of risk management.
Views on GCG
The Board of Commissioners uses General Guidelines of Indonesia's GCG from KNKG (National Committee on Governance Policies) Year 2006 as a reference in providing views on the implementation of good corporate governance. In general, the Company applies governance principles quite well.
The Board of Commissioners considers that the commitment and quality of GCG implementation has been running well. This is reflected in the acquisition of the results from an Independent Appraiser of GCG implementation of the Company by using two methodologies, namely, based on Decree 16/S.MBU/2012 Ministry of SOEs with a score of 91.4 with "Excellent" qualification and also based on the ASEAN Corporate Governance Scorecard issued by the OECD with a score of 92.50 with the "Excellent" qualification.
Improved implementation of GCG certainly gives impact on the achievement of the Company's performance. The performance achievement is rewarded with various awards from external parties which is a form of recognition for the success of management in managing the Company.
The Board of Commissioners congratulates the Board of Directors and staff for their performance and achievements during the year 2017. This is the result of the effectiveness of the leadership of the Board of Directors and the hard work of all employees. The Board of Directors managed to build a solid cooperation between management and employees.
On the performance achieved, the Board of Commissioners thanked and expressed its appreciation to all employees and the Board of Directors of PT Humpuss Intermodal Transport Tbk., the subsidiaries and sub-subsidiaries of companies and other Stakeholders who have given their support to the Company.
The Board of Commissioners hopes that the performance in 2017 can be maintained and improved for the prosperity of the Company and Shareholders. In order to meet the expectations, the management needs to maintain assets in a professional way, develop competencies and maintain employees’ motivation, as well as review and improve the practical working system, and implement effective oversight.