Samudera Shipping Expands Fleet with Acquisition of Ethylene Gas Vessels

The Board of Directors at Samudera Shipping Line Ltd. has announced a groundbreaking development concerning the acquisition of two ethylene gas carriers by its subsidiary, PT Samudera Shipping Indonesia. This significant transaction's comprehensive financial details were meticulously scrutinized in accordance with Rule 1006 of the Listing Manual, firmly grounded in the audited consolidated financial statements of the Group for the fiscal year concluding on December 31, 2022. A detailed breakdown of these financial intricacies is thoughtfully presented in Annex 1.

The memorandums of agreement meticulously mirror the prevailing market conditions for vessel transactions, notably devoid of any unusual requirements. The aggregate acquisition cost for both vessels stands definitively at $12,600,000, with the book value aligning seamlessly with this acquisition price. The methodical determination of purchase considerations operates on a willing-buyer willing-seller basis, factoring in elements such as the price range for comparable vessels provided by the ship broker and considerations related to the age and intended usage of the vessels.

The strategic importance of this acquisition is deeply ingrained in the Group's overarching goal of expanding its vessel fleet. Beyond serving as a facilitator for additional engagements in charter contracts, this enlarged fleet strategically positions the Group to actively participate in the burgeoning ethylene market in Indonesia. Ethylene, serving as a vital feedstock for numerous petrochemical plants both within Indonesia and globally, underscores the far-reaching impact of this acquisition. This strategic move not only fortifies the Group's operational capabilities but also resonates with its overarching strategic objectives, positioning itself for future market engagement and sustainable growth on a broader scale.

The acquisition represents a culmination of meticulous planning, strategic foresight, and a keen understanding of market dynamics. As the Group advances in expanding its fleet, it lays the groundwork for a more robust and diversified operational portfolio. This move isn't merely a transaction; it's a strategic leap forward into a market with immense growth potential.

The ethylene market in Indonesia presents a promising landscape, and by actively participating in it, the Group not only taps into new revenue streams but also solidifies its position as a key player in the maritime industry. The renamed vessels, Sinar Ternate and Sinar Tidore, symbolize not just a change in ownership but a strategic shift towards new horizons.

As the vessels undergo the final stages of acquisition and transition into the Group's fleet, they carry the promise of new opportunities, strengthened capabilities, and a brighter future. The Group's stakeholders, shareholders, and the maritime industry at large can look forward to witnessing the positive impact of this strategic move unfold in the coming years. The journey ahead is not just about sailing vessels; it's about navigating the seas of opportunity and growth in the dynamic maritime landscape.