For HITS Management, 2017 is the period to redeem the promise they have made to the Shareholders, that the Company can rise from adversity and return to sail at full speed.
Theo Lekatompessy, President Director of PT Humpuss Intermoda Transportasi Tbk. (stock code: HITS) is a successful captain to complete the process of corporate debt restructuring with a simple remedy, OBH (Organization, Business, and Law).
The method begins with the rescue of cash flow, and organizational reform, then solve legal problems for the company to re-operate after the economic crisis storm in 2007-2008.
Since being appointed as a HITS Leader in 2012, Theo is slowly but surely capable of 'reigniting' the Company's ship engines, and successfully turning the situation from loss to profit.
About 5 years ago, with consistency and hard work, HITS is able to accelerate when most players have to "lean their ships" because the shipping industry, both nationally and globally, is pressured by the changing of world oil prices.
In 2017, HITS posted a brilliant performance by generating the Company's revenue and also, the company’s revenue increased 12.14% from US $ 60.3 million in 2016 to US $ 67.7 million last year. The main secret of this accelerated profit growth is cost efficiency.
The earnings of comprehensive income attributed to the owners of the parent and non-controlling entities amounted to US $ 9.7 million or up 74.5% from the previous year valued at US $ 5.6 million.
Theo understands that efficiency is the key to keep a solid performance in a still depressed industry. The company succeeded to reduce the cost of revenue to US $ 38.87 million last year from US $ 44.28 million in 2016.
Efficiency does not mean HITS stops expanding. Armed with healthy cash flow, the Company increased its assets by the end of last year to US $ 175.56 million, up 6.34% annually, with cash and cash equivalents of US $ 18.03 million.
The increase in assets came after HITS bought three new fleets worth US $ 10.1 million. The fleet is deployed for dredging or dredging business, a form of business diversification undertaken by the Company to seize opportunities in government promoted maritime programs.
At the end of last year, the Company purchased two units of hopper barge 3055 and 3056 from Nagasaki Shipping Pte ltd. As well as one unit of clamshell dredgder Woobang Giant from Summit Offshore Marines Pte Ltd.
To finance the purchase of the vessels worth US $ 10.1 million, the company obtained a bank loan of US $ 6.8 million and the remaining US $ 3.3 million was taken from the Company's healthy internal cash.
Dredging business holds great potential, because the revamping of port infrastructure becomes one of the government's work focus in the maritime field. This is a strong consideration of HITS management to be optimistic for the development of the dredging segment.
Furthermore, this year, The Company purchased an oil tanker named MT Sinar Emas for US $ 8.7 million from PT Samudera Shipping Services.
"For the past 5 years, Humpuss has been working on and has returned to become a healthy company and is ready to sail and compete with other shipping companies, and continues to uphold the prudent attitude," Theo said.
The addition of vessels would require a strong human resources (HR) and reliable. To that end, HITS is seriously doing human resource development that has been done since 2016.
OBH recipe still held firm by Theo. In addition to seeking and creating business opportunities, a leader must build internal strength by pumping employee morale from the losing soldier to the winning team.
In addition, to strengthening the internal by conducting regular meetings and training, HITS also encourage the development of human resources outside the company's environment to support the needs of the national maritime industry.
Through the Humpuss Trilogy Maritime Training Center, the Company currently provides training for 11 types of human resources certification in maritime field that follows to the World Maritime Organization Standards Convention, Standards and Watchkeeping for Seafarers (STCW).
In addition, this year, HITS will also open a Postgraduate program in port area by cooperating with STC Rotterdam and Institue Pengembangan Manajemen Indonesia (IPMI).
Half a decade passed and Humpuss has managed to get out of all the trouble and succeeded in building a strong foundation to enter a new phase with different challenges.
The future challenge for the Company , is how to maintain sustainable growth performance amidst increasingly competitive competition in the maritime service industry.
Armed with the power of Management who can 'read the wind' -through a measured vision and mission of the Company-and a quality human resource development program, HITS is ready to move to capture every opportunity.
"We will remain focused on our core business, as well as create new opportunities that are in line with our vision and mission ,to generate added value for all our Shareholders and Stakeholders," closed by Theo.