PT Pelita Samudera Shipping Tbk (PSSI) targets its revenue to increase 10% to 15% or around US$75 million to US$80 million in 2021.

The company expects to meet the target as it plans to optimize and expand assets, diversify the business, and increase penetration into the international market.

PSSI's Managing Director, Iriawan Alex Ibarat, said that, like in 2020, the term rental contract is one of the keys to increasing revenue and transportation growth. Last year, the transport volume reached 24.9 million metric tons, and the company projects to improve them by around 10% to 12% in 2021.

"At the end of last year, the company which is engaged in sea transportation services booked a total unaudited revenue of US$68.4 million (around Rp 960 billion), or a decrease of about 9% from the same period the previous year of around US$75.3 million," he said in Jakarta, on Tuesday (2/3).

Still, the revenue got support, among others, from the rise in term lease income (before the audit) in 2020 by 35% to US$13.3 million from US$9.9 million in 2019.

"The highest growth is in the Tugboat and Barge (TNB) segment, followed by Large Bulk Ship (MV) and Floating Loading Facilities and Floating Cranes (FLF / FC)," said Alex.

Overall, the company has managed to secure a contract value of around US$164.6 million. Until the end of 2020, the composition of long-term contracts for FLF/FC reached 96% and 4% spot. The TNB segment reached 88% for long-term contracts and a 12% spot basis.

For the MV segment, out of 6 vessels, three vessels have secured long-term charter contracts, and three vessels are freight charter contracts (volume basis). Meanwhile, the actual capital expenditure (capex) in 2020 amounted to US$9 million, most of which was absorbed for fleet maintenance (docking) costs.

"No new fleet unit purchases will be carried out in 2020 as the company's strategy to optimize the utilization of its assets amid the sluggish export and domestic markets," said Alex.

Until the end of last year, the company's fleet utilization averaged 83.6% for TNB, 63.8% for FLF/FC, and 83.5% for MV. The four MV units purchased in 2019 have all operated in 2020 and have entered the international market via shipping to China, Taiwan, Vietnam, Singapore, and the Philippines. The full utilization and expansion of MV Pelita Shipping's multi-cargo fleet by almost 25% were for the transportation of commodities other than coal such as nickel, alumina, copper concentrate, clinker cement, silica sand, steel billets, and iron products.

"This is one of the company's business diversification targets. The TNB segment diversification includes nickel transportation," said Alex.

Meanwhile, the company's capex allocation for 2021 is targeting US$21 million. The company plans to add one Supramax class MV unit and tugboats and barges, to continue exploring the potential for new logistics markets, including non-coal.

Alex added, in addition to the transportation commodity diversification strategy, the coal market will still be a focus because it still has excellent prospects in the future, with a target of around 70% to 80% in the coal mine sector. The company's ability to continue to generate profits and the maintenance of a small debt ratio, he claims, has become a separate achievement record.