HITS’ 2014 Third Quarter Financial Review | HITS

HITS’ 2014 Third Quarter Financial Review

published on : 2014, October 31

PT Humpus Intermoda Transportasi Tbk. (HITS) raked in a revenue of $53,945,544 for the third quarter this year ended September 2014, rose $ 2,068,535 from $51,877,009 in the same period last year. Despite the revenue soared, the net profit about $1,592,460, due to loss of made by one of its subsidiary that specializing in bulk cargo in line with slowing down in coal and mining industry as well as implementation of new mining law No 4/2009 and regulation that required to build their own smelter. Despite the situation HITS is positive and predict to book US $ 75 million revenue this year end up from US $ 61 million in the same period last year.

HITS’s President, Theo Lekatompessy confirms that Company has successfully transform the Company from 2008 crisis that undergone the Company into hard situation. The restructuration in operation, business and legal has lifted up the Company to positive performance. Besides Theo adds the Company also made new contract to transport chemical products in 2013. “The two situations has been instrumental to HITS’s growth and definitely has impacted to the positive performance of the Company,” says Theo.

Theo adds that in general the Company’s earning is satisfactory despite being affected by some situation such government regulation that ban raw materials export early this year has remarkably impacted to the slowing down of profit of the Company. As information, despites the Company majority (80%) serves transportation for chemical, oil and gas business as its core business, the others also serves some transportation for mining industry and the last three years that constitute of about 20% of its total business.

“The government’s new regulation to ban export of raw mining materials such as iron ore, and others minerals materials clearly impacts to the performance of the Company for the last nine months in row,” says Theo.

The transition in politics also has impacted to the slowing down of new project HITS’s. As has been already known majority of HITS clients comes from state’s owned Company that deals in chemical such as fertilizers, while oil and gas business serving some power house such as PT Pertamina and PT PGN.

HITS’s Corporate Secretary Daryono believes that the situation will soon be able to be resolved in line with strong optimism under new Jokowi’s. “HITS performance is moving in line with target, despites uncertainties in country’s economic and political climate as well as competition from others players. “Some contracts has been postponed this year due to political situation,“ says Theo

HITS has been become main players in sea transportation services business for more than 20 years operates modern vessels transporting gas, oil and chemical for international and domestic market. (CS)