Manhattan unit sells tugs, barges to Karunia
Wednesday, October 12 2016 - 01:25 AM WIB
SGX-listed Manhattan Resources Limited said that its subsidiary PT Aneka Samudera Lintas had on October 10 entered into an agreement with PT Karunia Samudera Lines for the sale of 22 tugs and 22 barges for Rp 170.58 billion.
Manhattan said in a statement Tuesday that in respect of the group?s barging and shipping segment, the group reported lower revenue of approximately S$8.7 million for the financial year ended December 31, 2015 as compared to approximately S$17.0 million for FY2014 mainly due to lower coal carrying activities. Net attributable loss to equity holders of the company was approximately S$24.4 million in FY2015, as compared to approximately S$5.9 million in FY2014.
?The board is of the view that (i) the revenue generated by the barging activities depends on the water levels of the transport channels and weather conditions and unfavourable weather conditions have affected the coal transportation volume, and (ii) the outlook of coal industry and global economy remains uncertain which affects the overall demand of coal, and major Indonesian thermal coal producers have also not shown indications of production cuts for 2016,? the company said in the statement.
It said the purchase consideration of the vessels of Rp 170.58 billion represents a premium of approximately 60 percent to the book value of the vessels to be disposed of pursuant to the proposed disposal, being approximately S$10,711,000 as at June 30, 2016.
Accordingly, the disposal of the vessels will result in the disposal of a substantial portion of a loss-making business segment at a premium to their book value, improve the balance sheet of the group and hence enable it to conserve its resources, Manhattan said. Thereafter, the directors will be able to devote more time and energy towards the business of constructing, acquiring, operating and maintaining coal-fired steam power plants and the production and sale of electric power, the business of property development, investment, management and other related property activities in the People?s Republic of China and the business of exploring, mining, extraction and sale of mineral resources in the PRC; and to identify and explore any new business opportunities which may enhance shareholders? value, it ended.
Editing by Reiner Simanjuntak