Jakarta - PT Humpuss Intermodal Transport Tbk (HITS) will still focus on the consolidation of the internal addressing the continued decline in operating revenue up to 56.62% in September 2010 compared to the same period in the previous year.
Director HITS Bagoes Krisnamoerti revealed until the end of the year 2010, the company will not do any expansion, but rather perform internal repair company. "Management intends to reorganize the company's internal, such as the completion of the legal case, the optimization of the means of production, maximize crewing services, operational efficiencies and seek funding sources are efficient and effective," he said.
Especially with regard to the case law, HITS CEO confirms that management prioritize the cases that are being handled. Of the four cases of law, the new one is completed, the case law of the Heritage Maritime Ltd and Genuine Maritime Ltd. by Sandigan Ship Services Inc. has reached a peace agreement. So that the legal dispute between the company and Sandigan has been completed.
While the three other cases, is still in the process of completion and due process of arbitration, settlement condition becomes uncertain. "Three of the cases, is the legal case between the Maritime Heritage Ltd.SA (HML) with Parbulk II United States, the legal case between the Genuine Maritime Ltd SA (GML) with Hanjin Overseas Limited Bulk dry bulk vessels bareboat-related, and legal cases between Humpuss Sea transport Pte. ship owners to 7 chemical Empire, "he explained.
Decrease in Operating Revenues
Until 30 September 2010, HITS net loss of Rp. 48.23 billion. While on 30 September 2009 HITS net profit of Rp. 10.34 billion. Several things can cause a drastic drop in revenue, due to various factors such as the decline rate of the LNG ship charter rental ST Ekaputra, not the operation of dry bulk carriers due to a matter of dispute between the Company and the owner of the ship, not the operation of the four Empire ships carrying liquid chemicals due to also a matter of dispute as well as damage to several ships carrying crude oil and fuel oil so that it can not operate.
This causes the total revenue has declined dramatically by 56.62% as of September 30, 2010 compared to the same period in the previous year. Of the seven-run business scope of the company, only the coal boat rental services and ship management services and intermediaries who experienced an average increase of about 15-20%, while other business scope has decreased significantly.
The most drastic, is a boat rental service liquid chemicals at 91.97%. The decline in revenue in this business scope, related to the case of the Empire. Which since late 2009 has no chemical operation of four ships Empire, because it has been returned to its owner. This also marks the start of a legal case between the HST with the owner of the ship Empire 7.
HITS is still going to continue to conduct internal consolidation, and strengthening its balance sheet due to a heavy load, especially in the year 2010 due to the uncertainty of legal cases that have not been resolved due to the arbitration proceedings, fluctuations in ocean freight rates are likely to decline, and increasing competition, the company is optimistic start to rise again in the second half of 2011 and will continue in mid 2011.
For further information, please contact:
Yayak M. Iskandar
Corporate Secretary HITS
Phone. (021) 252 4114