Transhipment company PT Trans Power Marine (TPMA) booked double-digit revenue growth in the first quarter of 2020, mainly driven by its tug & barge fleet. The company earned a revenue of $13.65 million (Rp 194.14 billion) in 1Q-2020, up 28.28% compared to $10.64 million in the first quarter of last year. TPMA's tug & barge line of services was by far the leading revenue generator in 1Q-2020, contributing $10.66 million.
According to TPMA director Rudy Sutiono, the revenue increase in 1Q-2020 was mainly due to coal companies fulfilling their orders from last year for TPMA's transhipment services, which carried over the first quarter of 2020.
On the other hand, TPMA only earned a net profit of $1.19 million in 1Q-2020, down 38% from $1.92 million in last year's first quarter. The significant drop in earnings was caused by the exchange rate loss recorded by TPMA in this year's first quarter. The company suffered an exchange rate loss of $969,145 in 1Q-2020, which is a noticeable contrast from 1Q-2019 when the company enjoyed an exchange rate gain of $123,376.
Rudy also admitted that the company's profit margin had only experienced a slight increase due to TPMA incurring extra costs. TPMA had to rent ships from other transhipment companies to fulfil 12 sets of orders. Furthermore, fuel prices also spiked during 1Q-2020, while the company was only able to increase the prices for its services slightly due to weaker demand during the quarter.
Based on the company website, TPMA currently owns and operates over 60 tug & barge ships and several floating cranes.