Dear Our Most Valued Shareholders and Stakeholders,
On behalf of the Board of Directors and all employees of HITS, allow me to present to you the performance report of PT Humpuss Intermoda Transportasi Tbk. for the fiscal year of 2022. The achievements of performance made in 2022, both in the operational and business aspect, shows the Company’s commitment together with all human resources, both on land and on board to jointly move for the growth and development of the Company’s business and to provide greater value to all shareholders and stakeholders during the recovery phase following the Corona Virus Disease 2019 (COVID-19) pandemic.
Developing Sustainable Operation And Business: Strategic Policies And Achievements In 2022
With all the challenges and uncertainty posed by the global economic condition in 2022, the Company is still able to respond to those challenges rather swiftly to maintain its competitive edge in the industry. The Company is taking every opportunity that comes its way in order to realize its business target, and to respond to the latest development in the industry by making swift and efficient adjustment.
First, the Company has implemented programs to recover its operational, business, and financial activity gradually since the very beginning of the post-COVID-19 pandemic period. Optimization of ship assets owned by the Company is expected to boost profitability and earned revenues. Moreover, HITS is also maintaining its focus on the target markets that have been its strength so far. LNG segment is the backbone in maintaining Company’s growth as the Company is highly experienced in transporting LNG, not to mention the promising future and high potential of this particular segment. Increasing the total number of ship unit is also done by taking into consideration the Company’s growth and business development strategy n order to be able to increase its market share, net income, and net profit, resulting in a more formidable consolidated financial performance.
Second, cost optimization is implemented by performing a more careful cost management, reducing uncertain cost, and preparing a more healthy Working Plan and Budget. In 2022, the Company implemented various initiatives in relation to cost efficiency, simplification of work procedure, optimization of operational cost, prioritizing capital expenditures on investments that can boost revenue growth.
To realize these two steps, the Company strengthens the organization through organizational alignment that is oriented towards effective business processes and qualified Human Resources (HR). Organizational alignment carried out either through organizational restructuring, Job Grading, education and training, business process alignment, and centralization. Not only that, the Company also strengthens digitalization so that the monitoring process is precise with the reality on the ground. Digitalization is developed through accounting systems and Enterprise Resource Planning (ERP) and Data Centers.
The management team also made capital structure a priority. The Company is committed to maintain its robust capital structure position and to use its capital optimally to support its business growth. Capital structure is assessed by its sufficiency to finance business expansion, both organically and non-organically, according to the Company’s business plan. This is done by implementing capital management with short-term, medium-term, and long-term capital plans by taking into consideration the Company’s business strategy. The management have a keen understanding in capital management, where the Board of Directors and the Board of Commissioners regard capital plan as a vital element to realize strategic goals.
With a fairly good response to the dynamics of the existing situation, in 2022 the Company was able to increase its business revenue up to 32.07%, from USD 84.99 million to USD 112.24 million. Operating expenses were able to be streamlined by 35.06%, thus in 2022 the Company recorded a net profit of USD 11.28 million, growing by 187.40% compared to a net loss in 2021 of USD 12.91 million
Business Prospect In 2023
It is expected that the economic and sociological condition in 2023 will keep improving after COVID-19 pandemic has relatively abated. A series of effective and efficient policies has been taken by the Indonesian government to maintain economic growth amidst the unfavorable global economic condition. Despite the effort, the looming threat of global recession and the prolonged COVID-19 pandemic are still considered as a significant threat by many.
With its strong position in the industry (in part contributed by a high barrier to entry), long experience in shipping industry that spans within a period of three decades, and its longterm contract with time charter scheme, the Company is optimistic that it will be able to maintain a sustainable revenue for the long-term. In order to enhance its position in the industry and to provide the best services to customers, the Company has prepared its business strategies with affiliated entities to form an effective and efficient business model to outreach the Company’s target market to maintain business growth.
In 2023, the Company projects performance growth optimistically with revenues able to grow 40% and net profit able to grow 7% compared to the realization in 2022. In addition, total assets are projected to grow up to 35%, and equity can increase up to 31% against the realization in 2022.
In 2022, HITS enhanced its good corporate governance implementation by issuing the new Guidelines to Implement Good Corporate Governance, Guidelines for Sustainability Roadmap, Guidelines for Material Transaction, Affiliation, and Conflict of Interest, Guidelines on Conflict of Interest, Guidelines for Correspondence, Guidelines for Social Media Use, Business Development Committee Charter, and Internal Audit Charter.
In 2022 the Company also performed an assessment process to gauge how successful is the good corporate governance implementation in the Company. The assessment was performed by self-assessment method by the good corporate governance and CSR Committee as the supporting committee for the Board of Commissioners and by using the ASEAN Corporate Governance Scorecard (ACGS) that refers to publicly available information and annual report as available in HITS website. The assessment in 2022 shows the result of 96.72 score point with “Very Good” rating, only slightly different from the result in the previous year with 99.33 score point and “Very Good” rating as well. Obtaining a score in 2022 required improvement/perfection in areas in implementing best corporate governance practices.
In addition, the Company also evaluated the good corporate governance implementation by referring to the SEOJK No. 32/SEOJK.04/2015 on the Guidelines for Open Corporate Governance, where this SEOJK serves as the implementation standard for all publicly listed company in Indonesia. From the evaluation process, the Company found many aspects in the implementation process that need to be improved in the future.
For all the achievements we made and obstacles we overcame, the Board of Directors would like to express our highest gratitude to God the Almighty. The Board of Directors would like also to thank all shareholders for the support and confidence that they have given us. For all members of the Board of Commissioners, we would like to pay our appreciation for their invaluable advices and cooperation in managing the Company. Also, thank you to all regulators, customers, suppliers, and business partners for their cooperation and fruitful partnership.
To all employees and staffs, the Board of Directors is grateful for the diligence and creative spirit that you have shown us throughout the challenging year of 2022. Our achievements in 2022 will serve as a foundation for the Company to keep on moving and making the best out of its capabilities in the years to come.