The Income of HITS Increased by 9% during the 2014 Economic Slowdown | HITS

The Income of HITS Increased by 9% during the 2014 Economic Slowdown

published on : 2015, April 13

JAKARTA – PT Humpuss Intermoda Transportasi Tbk. (HITS) recorded revenue of US$ 66.6 million during the last year, an increase of 9% compared to US$ 6.1 million in 2013 during the economic slowdown in Indonesia.


The President Director of HITS, Theo Lekatompessy stated that the increase in operating income was mainly due to increasing income earned from tanker charter for chemical transportation.


He stated that, since April 2013, the Company has started to provide ammoniac transportation service and, since September 2013, methanol transportation has commenced. “Meanwhile, during the last year, all chemical transporting vessels were fully operating,” said he. The 2014 income increased only 9% due to divestment of shares in HTC, contributing US$ 8,426,175 to the Company’s income, which was 36% lower compared to US$ 13,350,226 in 2013 and, therefore, the impact of the decrease in income of HTC in 2014 on the income of HITS was 10 %. If the amounts were still consolidated, the income of HITS would increase by 18 %.


According to him, during 2014 there was no new contract because the year was a political year in which the event of General Election of legislative members and President and Vice President was held and, therefore, the governmental projects were suspended. Consequently, the economy experienced slowdown during the previous year.


Though 2014 was a political year, the Company did not only manage to increase its income up to "Double digits", but also strengthened its financial position to grow in 2015.


Meanwhile, the Company’s gross income for the last year experienced increase of 11% to US$ 16 million on a year-on-year basis. In addition, the Company also managed to record comprehensive income of US$3.6 million compared to the previous year with comprehensive loss of US$ 2.6 million.


In line with operational of petrochemical transportation, income for the year decreased 51% to US$ 1.5 million, because the Company recorded a loss on realization of foreign currency translation adjustments of the financial statements due to the release of the HTC investment of US$ 2.4 million in income for the year (non-operational).


In the previous year, the Company actively made fundamental strengthening by restructuring its loans into equity and selling its shares in subsidiaries. The decrease in loan and increase in equity resulted from the impact of the 2014 Debt Equity swap.


On 17 December 2014, the Company, its subsidiary namely PT HumpussTransportasi Kimia (HTK), PT Solusi Perkasa Nusantara (SPN), and PT Sarana Niaga Buana (SNB) executed a settlement agreement with respect to the Company’s loan to SPN and HTK in the amount of US$ 3.3 million and US$ 6.1 million, respectively.


This was conducted by way of divestment of shares held by the Company, representing 39.9% of the total shares in the subsidiary PT Humpuss Transportasi Curah to SNB. SNB thereafter acquired the Company’s loan to SPN and HTK.


Currently, the Company has 29 units of vessels comprising 1 LNG Tanker, 1 Chemical Tanker, 5 Oil Tankers, 4 Offshore vessels, and 18 Tug Boats & Barges (16 boxes).


Theo added that, upon improving its capital structure, the Company would prepare itself to have better performance than the last year.