Humpuss Intermoda sees higher revenue, profits

The Jakarta Post, Jakarta

Despite higher operational costs and sharp fluctuations in the value of the rupiah, shipping firm PT Humpuss Intermoda Transportasi expects a 25 percent increase in profit next year by boosting efficiency and the number of vessels in its fleet.

"The fuel price hike and rupiah fluctuation against the U.S. dollar have pushed up operational costs by 60 percent," president director Teguh Arya Putra said on Wednesday.

"We're setting up strategies, including buying another 10 boats next year to increase revenue and productivity. The boats will engage in delivering chemical products, coal, as well as in the container transporting sector," he added.

The new ships, which will lift the number of the firm's vessels to 40, will cost about US$70 million.

"With these efforts, the company expects to increase revenue from about Rp 800 billion this year to Rp 1.1 trillion in next year.

"Profits are expected to reach Rp 200 billion next year, from Rp 160 billion this year," Teguh added.

To reduce costs, starting next year the company would have its ships undergo maintenance in China or Vietnam, instead of the more expensive Singapore and Japan -- where the company usually send its boats.

Vessels usually undergo maintenance checks once every two years.

Teguh also said the company would explore the possibility of serving more offshore routes to help it increase its dollar revenues.