HITS Performance in 2016 - Undisturbed Despite Strong Waves | HITS

HITS Performance in 2016 - Undisturbed Despite Strong Waves

published on : 2017, March 31

Even though the global price of raw oil within the past few years, PT Humpuss Intermoda Transportasi Tbk. has continued to sail and successfully marked a positive performance in their 2016’s books.


For the past year, the company listed in Bursa Efek Indonesia with the code HITS has successfully increased income as much as 15.89% into US$60,37 million. In comparison, their income in 2015 was US$52,09 million.


HITS was capable to spur their performance after 2015, when the company listed their income as US$52,09 million, a decrease in comparison to 2014’s US$ 66,06 million.


One of the reasons for the company’s performance was due to an increase of income from gas transportation segment  of US$16,34 million in 2016, Ekaputra has a contract until 2020.


Moreover, the company also attained a contract to transport LNG for 7 years until 31 March 2023. From said contract, HITS noted an income of US$10,91 million last year.


According to the type of service, HITS’ income last year was still dominated from transporting natural gas and raw oil as well as fuel, contributing as much as 65% of the Company’s whole income.


Interestingly, this new line of business only had commercially operated since 2016, namely the service of providing management over the ship’s crew and a centre for training the ship’s crew, which had also contributed to the company’s income.


Last year, the company’s subsidiary PT MISI Hutama International, whose stocks are 100% owned by HITS has started operating in the crew management sector. MISI has a subsidiary named PT MCS Internasional which had opened up Humpuss Trilogi Maritime Training Centre (HTMTC) just last year.


HTMTC had acquired certifications from the DG of Marine Transportation (Dirjen Perhubungan Laut Kementerian Perhubungan) for Basic Oil and for Basic Oil and Chemical Tanker (BOCT), Basic Liquefied Gas Tanker (BLGT), Advanced Oil / Chemical Tanker (AOT/ACT), and Advanced Liquefied Gas Tanker (ALGT).


Last year, MCS International also cooperated with one of the most noteworthy seamanship schools in the world; STC Rotterdam. The agreement between the two parties will first focus on developing seamen within the Mini LNG sector which is the company’s core business at this point.


This is in line with HITSs’ plan to strengthen the quality of human rescource within the field of maritime and shipping to support the Sea High Way program proposed by the government and president Joko Widodo.


“The transport of oil and gas does not only involve problems of ships as carriers but also the skills and craftsmanship of the ship’s crew” mentioned Theo Lekatompesy, the President of HITS.


The company’s increased income was followed by increased obligations from US$44,28 million in 2016 from US$36,06 million in the previous year. One of the reasons for the increase in obligations is the increase in depreciation from US$9 million in 2015 into US$14,12 million as of last year.


This is the reason why HITS’ gross profit is US$16 last year and has not changed much compared to the previous years. The company also noted profits and reasonable investment measures in the shape of combining businesses as much as US$6,47 million last year.


With the aforementioned note, the Company’s yearly profit of the current year has increased 64% or US$5,38 juta. Moreover, the present year’s profits can be attributed to the main entity which last year has attained  US$2,62 juta, or namely increase 17% on a yearly basis.


HITS’ performance is noteworthy with its core business of transporting gas, has still managed to increase income by 15,89% on a yearly basis.


“With the right strategy and strict efficiency, HITS keeps focusing on the company’s core business while still looking for opportunities and new contracts with caution. Positive performance in 2016 gives us a strong capital to venture into a business which is still full of challenges,” mentioned Theo.


Another capital HITS owned is the fundamental strength of the company after conducting quasi-reorganizations to restructure its equity and erase the accumulated loss by reporting the financial position of the consolidated structures as of 31 December 2015.


As the captain of HITS, Theo elaborated the benefits of the quasi-reorganization is to enable the possibility that the Company starts anew with reporting their consolidated financial position which shows a better financial position and the capital’s structure without being burdened with past deficits.


Thereby, the company has an increased change of attaining fundings for developments and expansions.


“We hope that the priorly pending tenders will be realised this year.” concluded Theo.


HITS is certain that the company’s present condition is very healthy, enabling it to catch opportunities in the nearby future while still acting in caution and in line with the core business the company has endured with for all this time. (*)