Arpeni in red on poor margin

In contrast to its stock price which surged 61% since March, shipping company PT Arpeni Pratama Ocean Line (APOL) Tbk reported net loss of Rp197 billion in the first half 2009 against net profit of Rp45 billion in the same period last year.

According to APOL's financial statement, sales revenue declined 21% in H1 2009, while cost of services declined 8% only. As a result, the company's gross profit slashed 56% to Rp135 billion. APOL's operating expenses down slightly to Rp70.96 billion from Rp72 billion in H1 2008, resulting in substantial drop of operating profit by 73% to Rp64 billion.

Due to huge debts, APOL reported significantly higher interest expenses of Rp195 billion plus derivative losses of Rp67 billion. APOL had total liabilities of Rp5.5 trillion or about US$550 million as of June 30, 2009 while its equity was only Rp1.33 trillion. APOL's total asset was Rp6.85 trillion, while its market capitalization is currently Rp700 billion.

Its peer, PT Samudera Indonesia (SMDR) Tbk is in a better position. While its service revenues also declined, the company managed to book net profit of Rp32 billion in H1 2009. But that profit is a 72% drop from the same period last year.

The biggest listed shipping company PT Berlian Laju Tanker (BLTA) Tbk has yet to release its first half results. Smaller player PT Trada Maritime Tbk, meanwhile, reported stronger results on higher service revenues and margins.

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