The following release was published by HMM:
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The revenue stood at KRW 4,212 billion with an operating profit of KRW 467 billion in H1 2023
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The net profit was KRW 610 billion, with a margin of 14.5% in H1 2023.
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For the second quarter, revenue and operating profit came to KRW 2,130 billion and KRW 160 billion, respectively. Net profit reached KRW 313 billion.
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The financial structure has remained strong. HMM’s debt-to-equity ratio slightly improved to 24% in June 2023 from 26% in December 2022.
Outlook & Plans
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The container shipping industry has been experiencing an overcapacity, mainly led by the influx of new containerships ordered during the pandemic and supply chain normalization at major ports and inland regions. The cascading effect of larger vessels from the main east-west trades to smaller lanes intensified the imbalance between supply and demand.
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Consequently, the freight rates in most key trade lanes have been under downward pressure during H1 2023. The Shanghai Containerized Freight Index (SCFI) in H1 2023 was 976 points on average, significantly down 78% from 4,504 points in H1 2022.
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In the case of Transpacific trade, we expect to see a gradual recovery in cargo volumes as a rebound in inventory restocking and a soft landing for the U.S. economy are likely to come to fruition, with no drastic changes in the supply side in the near term.
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HMM will continue to carry out service adjustments such as introducing the FIM (Far East Asia, India and the Mediterranean Sea) routes, cost-cutting measures and enhance operational efficiency to cope with market uncertainty.
Source: HMM