News Content
Singamas loss widens in 2016 to US$59m
MAJOR container manufacturer Singamas Container Holdings, a subsidiary of Singapore-headquartered Pacific International Lines (PIL), saw 2016 net losses widen to US$59.4 million from $2.7 million in 2015 as revenue fell by almost a fifth to $916.4 million from $1.13 billion previously.
The Hong Kong-listed company said in a press release that the container industry continued to be affected by the downturn of the global economy, with market demand and the average selling price (ASP) of new dry freight containers remaining under pressure.
"The group was inevitably impacted by such economic doldrums," it said, noting also that additional compensation in connection with the Tianjin explosion incident and other one-off expenses contributed to the poor results, reported the Seatrade Maritime News of Colchester, UK.
Demand for new containers remained lacklustre for much of the year due to weak global trade conditions and market uncertainties from the consolidation activity in the industry, Singamas said.
The ASP of a standard TEU container fell from $1,789 in 2015 to $1,457 in 2016, due to a significant decline in the price of corten steel and generally weak market demand.
As a result, revenue from Singamas' key container manufacturing operations fell to $880.7 million from $1.09 billion previously and the segment turned to an operational loss of $59.6 million from a profit of $2.1 million in 2015.
However, the group maintained market share, producing 523,785 TEU, just slightly lower than the 526,893 TEU manufactured in 2015 and total sales volume rose 4 per cent to 543,708 TEU from 520,684 TEU previously.
The still small but growing logistics services segment continued to perform stably with revenue rising slightly to $35.8 million from $32.6 million in 2015. However segment results were hit by $6.7 million in charges that had to be taken due to further compensation made in relation to the Tianjin explosion incident. Segment operational profit fell to $1.3 million from $6.8 million previously as the group handled 3.7 million TEU, up 23 per cent from 3.1 million TEU in 2015.
"The industry will have to continue tackling stiff challenges in the foreseeable future, therefore, Singamas will remain cautious on the business development front and continue to implement effective cost control measures," concluded chairman Teo Siong Seng.
The Hong Kong-listed company said in a press release that the container industry continued to be affected by the downturn of the global economy, with market demand and the average selling price (ASP) of new dry freight containers remaining under pressure.
"The group was inevitably impacted by such economic doldrums," it said, noting also that additional compensation in connection with the Tianjin explosion incident and other one-off expenses contributed to the poor results, reported the Seatrade Maritime News of Colchester, UK.
Demand for new containers remained lacklustre for much of the year due to weak global trade conditions and market uncertainties from the consolidation activity in the industry, Singamas said.
The ASP of a standard TEU container fell from $1,789 in 2015 to $1,457 in 2016, due to a significant decline in the price of corten steel and generally weak market demand.
As a result, revenue from Singamas' key container manufacturing operations fell to $880.7 million from $1.09 billion previously and the segment turned to an operational loss of $59.6 million from a profit of $2.1 million in 2015.
However, the group maintained market share, producing 523,785 TEU, just slightly lower than the 526,893 TEU manufactured in 2015 and total sales volume rose 4 per cent to 543,708 TEU from 520,684 TEU previously.
The still small but growing logistics services segment continued to perform stably with revenue rising slightly to $35.8 million from $32.6 million in 2015. However segment results were hit by $6.7 million in charges that had to be taken due to further compensation made in relation to the Tianjin explosion incident. Segment operational profit fell to $1.3 million from $6.8 million previously as the group handled 3.7 million TEU, up 23 per cent from 3.1 million TEU in 2015.
"The industry will have to continue tackling stiff challenges in the foreseeable future, therefore, Singamas will remain cautious on the business development front and continue to implement effective cost control measures," concluded chairman Teo Siong Seng.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
