HMM remains profitable despite market uncertainty
2024-02-14 11:31

HMM remains profitable despite market uncertainty

The following news article was published by HMM

  • The operating profit was KRW 585 billion, with a margin of 7% in 2023.

  • The net profit came to KRW 1,006 billion, with a margin of 12% in 2023.

  • The revenue stood at KRW 8,401 billion in 2023.

◌ The financial structure has remained solid. The company’s debt-to-equity ratio slightly improved to 20% in 2023 from 25% in 2022.

◌ Overall, the slowdown in demand and the influx of new containerships led to the normalization of the container shipping market, putting the freight rates in key trade lanes under downward pressure during 2023. The Shanghai Containerized Freight Index (SCFI) in 2023 was 1,006 points on average, significantly down 71% from 3,410 points in 2022.

◌ Disruptions in the Red Sea region are still underway, and a severe drought in the Panama Canal restricted daily vessel transits. Both issues have led to widespread uncertainty and market volatility.

◌ HMM will take delivery of twelve 13,000 TEU containerships this year, reaching its fleet capacity of 1 million TEUs. Once delivery is completed, large containerships of more than 10,000 TEU will account for 80% of HMM’s fleet, substantially improving cost structure and operational efficiency.

◌ Regardless of the recent sale process, HMM makes great efforts to enhance its business capability for the swift response to the ever-changing market environment and will continue to secure a solid foundation for future growth.

Source: HMM