Singamas stays hopeful despite profit slump
Container maker expects growing demand and price rises after earnings plunge 56.5 per cent
Shares in Singamas Container fell 4.57 per cent to close at HK$2.09 after the firm said net profit plunged 56.5 per cent to US$60.35 million last year. Revenue dropped 15.5 per cent to US$1.54 billion.
But president and chief executive Teo Siong Seng is hopeful of a revival in fortunes this year, fuelled by growing demand for containers and a rise in average selling prices.
"We think demand might pick up at the end of April and May," he said, adding there were signs of an increase in cargo volumes on transpacific and intra-Asia routes.
He said Singamas' mainland box factories had forward orders until mid-May, with strong demand at its plants in southern China.
Teo said the average selling price of a 20-foot container was now US$2,400 for May delivery, up by US$200 from the end of last year. He forecast prices could rise to as much as US$2,600 by the middle of this year, buoyed by an increase in orders from container-leasing companies and an expected rise in raw material prices.
He predicted the delivery of new container ships would peak in the next two years. Shipping capacity would climb from 16.34 million teu (20-foot equivalent units) at the end of last year to 19.09 million teu by the end of 2016.
