Executive Chairman's Message

Dear all,

On 30 March 2021, PIL was poised for renewal with the successful implementation of our restructuring. To position PIL for sustainable growth, we pledged our commitment to improve business operations and deleverage our balance sheet. More importantly, we recognised the importance of reinventing ourselves so that we could adapt to the ever-changing market.

To support our goals, our two Co-Presidents and Executive Directors, Gan Chee Yen and Lars Kastrup, have brought their vast experience and deep expertise to PIL. Since joining us, their input has helped to guide PIL’s operations, strategy and corporate governance.

Our Board has also been strengthened with the appointment of Mr Ng Kee Choe, Mr Chandra Das, Mr Yap Chee Keong, and Mr Andrew Lim, who act as non-Executive Directors.

Thanks to the strong market and the tireless efforts of our colleagues, I am pleased to share that our financial results have been very encouraging. While we are on our way to achieving a healthy balance sheet, much work still needs to be done to achieve a sustainable capital structure.

Over the next few years. our focus will be to maintain a lean portfolio through regular reviews of our fleet size and service coverage, while ensuring that we meet customer expectations. We have over 100 vessels in our current fleet and we plan to stay nimble in order to meet market demands.

Regarding our trade routes, we have strengthened our focus on China, Asia, Africa, Middle East, South America and Oceania. PIL is known in the market for our Asia and Africa networks, and we are leveraging our insights in these markets to seek wider coverage within these segments. In July 2021, we resumed our direct Mozambique service as part of our efforts to strengthen our service offerings to the Eastern and Southern African market.

The long running pandemic is impacting economies and interrupting global supply chains. We fully understand the challenges faced by our overseas offices, agents, customers and terminal operators, and are working closely with them to ensure minimal disruptions by managing our vessel schedules and container supplies.

We are also mindful of the well-being of our seafarers as they adjust to the unpredictable operating landscape. Our fleet and crewing management is working diligently to develop safe and efficient measures to enhance the safety and welfare of our seafarers.

Notwithstanding the dynamic market situation, PIL remains committed to digitalisation and sustainability. Through digitalisation, we aim to provide efficient shipping and logistics services to our customers. We continue to participate in global corporate social responsibility movements such as those related to marine litter and wildlife trafficking. Environmental initiatives such as decarbonisation are also at the forefront of our strategy.

We have progressed well in the areas of business and operational excellence. Departments and teams within PIL have been re-organised, and we now have key business divisions focusing on global agencies and customers (Commercial), line management (Trade), vessel operations and cargo (Operations), as well as vessel and marine personnel management (Fleet). In addition, we are embarking on an integrated global finance system to streamline our finance and work processes for improved efficiency. We are also strengthening our cash flow monitoring capabilities via the implementation of a new treasury management system.

Throughout the ups and downs in the PIL journey, in particular during recent years, I am truly grateful for the dedication from all our colleagues in Singapore and overseas, as well as the support from our stakeholders, partners and friends.

I fully acknowledge that the process of restructuring and reinventing PIL would have caused uncertainties to our workforce, our customers and our partners. Fortunately, our hard work and committed efforts have paid off and PIL is stabilising. We are confident that PIL is well on its way to realising our full potential as an industry-leading shipping company.

On this note, I would like to convey my thanks to our board, colleagues (both at sea and on shore), customers, partners, friends and other stakeholders. PIL would not be standing tall today if not for all your confidence and support.



S. S. Teo