In today’s briefing:
- PT Sillo Maritime Perdana Tbk – Steady as She Sails
PT Sillo Maritime Perdana Tbk – Steady as She Sails
- Fleet expansion driving top-line: As most of SHIP’s time-charter rates are fixed under long-term contracts (3-5 years), its revenue growth (~15% CAGR from FY18-21) has been driven largely by fleet expansion (added 7 vessels to 21 units from FY18-21).
- Excellent track record: We expect revenue to grow in tandem with vessel additions as 1) SHIP has 30+ years of experience and has built relationships with many of the oil & gas majors (Pertamina, PetroChina, etc.), giving it an edge to secure contracts immediately after purchasing vessels and get them renewed after they expire;
- Sustainable, high GP margin: Having vessels with certain specifications (e.g., VLGC) have also enabled SHIP to win contracts at favorable prices (owned vessels: GPM of 50-70% vs. leased vessels: 5-10%), due to limited availability.
Before it’s here, it’s on Smartkarma
