LEAD gross profit margin for this year 9 months result rose 363% YoY to USD 1.3 million as cost of sales dropped 6%. This improvement of gross profit affect higher EBITDA. LEAD EBITDA increased 30% YoY to USD 7.5 million.

Gross Profit Improved
While the revenue of Logindo for 3rd quarter result was about the same as last year, Logindo gross profit rose 363% YoY to USD 1.3 million. This was caused by lower cost of revenue due to drop of fuel cost in 9 month result this year. The fuel cost dropped 63% YoY or USD 1.2 million. The drop was caused that almost all of the jobs in 2018 were under ‘dry contract’ which means the fuel cost were borne by the charterer.

Increase in Fleet Utilization
Fleet utilization gradually increased. From 47% in 2017 59% in 9 month result in 2018. This 59% utilization has exceeded LEAD target utilization of 57% or 10% increment from last year. Type of vessel that contribute on the increment were AHTS and AHTS DP from 50% and 42% in 2017 to 88% and 57% as of end September 2018. These AHTS and AHTS DP contributes 50% of LEAD revenue.

While the industry is still challenging and the charter rate is competitive, LEAD ensure that every contract won contributes additional cash to the company. This strategy pushed LEAD EBITDA to rise by 30% YoY from USD 5.7 million to USD 7.5 million.

 

Efficiency & Management

Management keep monitoring efficiency in General and Administrative Expenses without reducing office capabilities to manage and support vessel operation. Logindo managed to reduce General and Administrative Expenses by 15% YoY or almost USD 500,000 lower compare to last year.
Besides from commercial and operation, Logindo is on negotiation for loan restructuring with some of the lender. This will bring better cash flow for LEAD and healtier balance sheet. Within this year, LEAD has sold 3 vessels (1 tug boat and 2 flat top barges) which age were more than 20 years and no longer suitable for oil and gas industries. The disposal of these vessels together with un- productive assets contribute gain for the company in amount of USD 22 thousand.

Bottom line of this year 9 month result was improvement of profit (loss) for the year from (USD 8 million) loss to (USD 6.6 million) loss or improved 17% YoY.

 

For more information, Please Contact :
Adrianus Iskandar
CFO, Corporate Secretary & Corporate Relation
PT Logindo Samudramakmur Tbk
Tel (021) 6471 – 3088 Ext. 308
Email : adrianus_iskandar@logindo.com