Singapore Shipping Corporation’s net income rises by 38.7% to USD4.2m

Thanks to full contributions from its existing vessels.

The shipping firm continues to weather the storm in the shipping industry as it delivered another set of impressive results on back of its unique business model.

According to analysts from RHB Research, SSC’ prospects are brightened by the signing of the TPP agreement, while its strong cash flow generation capacity ensures ammunition for business expansion.

Additionally, RHB Research expects the group to also report similar earnings in the next quarter.

“As we had previously pointed out, there would be limited room for earnings variability due to its niche business model with most of the revenue and costs fixed for its ship chartering business for the next decade,” RHB Research said.

Meanwhile, RHB Research adds that SSC’s net gearing ratio has also come down to 115% as it generated USD20.2m of net operating cash flow in nine months.

“The strong cash flow provides the group with ammunition for future vessel acquisition without having to raise any equity,” RHB Research said.