Yang Ming Reports Its Financial Results for 2018 Q3
2018-11-12 18:00

Yang Ming Reports Its Financial Results for 2018 Q3

The following press release was published by Yang Ming:

Yang Ming Marine Transport Corporation (Yang Ming) held its 334th Board Meeting on November 12th, 2018 to approve its Q3 financial report of 2018.

The company posted its 3rd quarter consolidated revenues of NTD 38.72 billion (USD 1.29 billion), a growth of 15.23% compared with revenue from the previous quarter. Volumes in 2018 Q3 increased by 9.19% to 1.41 million TEUs compared with the 2nd quarter. Yang Ming’s net loss after tax for Q3 was NTD 0.91 billion (USD 30 million), a reduction of 76.16% compared to last quarter. The year-to-date consolidated revenues increased by 4.12%, year-over-year, to NTD 103.35 billion (USD 3.45 billion), a volume increase of 11.35%, year-over-year, to 3.92 million TEUs. The net loss after tax for the first three quarters was NTD 6.67 billion (USD 220 million).

An unfavorable supply-demand balance with weakening freight rates and escalating bunker prices, which rose 28.38% in the first 9 months year over year, contributed more than NTD 4 billion(USD 134 million) to carriers’ operating costs. Anticipated for the next quarter, the escalating trade war is likely to accelerate Chinese exports to the U.S. and, therefore freight rates and loading factors should improve for the Transpacific sector. In the Asia Europe sector, Yang Ming also expects to see improving rates and volumes as factories resume production following the October China Golden week. Considering these factors, Yang Ming’s outlook for Q4 is optimistic. Going forward into next year, Alphaliner’s latest projection predicts an increase of 4.3% in global throughput which will exceed forecasted capacity growth of 3.9%.

Responding to many uncertainties faced by global shipping throughout 2018, Yang Ming has made adjustments to strengthen its strategies. Taking advantage of opportunities in the fast-growing economies in Southeast Asia, the company will optimize its Intra-Asia service network. Concurrently, Yang Ming’s subsidiary, YES Logistics Corp., established joint ventures in Vietnam and Indonesia earlier this year to better integrate its logistics supply chain in the region, while Yang Ming continues to cooperate with other transportation related enterprises to seize upon investment opportunities in the ASEAN countries.

Partnering with Taiwan International Ports Corporation, Ltd. (TIPC) and Indonesian investors, Yang Ming established a depot in Surabaya, Indonesia under the joint venture, P T. FORMOSA SEJATI LOGISTICS, in May 2018. Yang Ming also collaborated with TIPC and other transportation enterprises such as T.S. Lines Co., Ltd., Taiwan Navigation Co., Ltd. and Chunghwa Post Co., Ltd., to establish Taiwan Foundation International Pte. Ltd., a joint venture holding company intended to deepen and extend into the Southeast Asia market. Through these cooperatives, Yang Ming endeavors to improve its cost structure, maximize investment revenue and profits, and effectively navigate the continuing challenges and risks facing the shipping industry.

Updating on fleet deployment, Yang Ming will introduce four 14,000 TEU chartered vessels to optimize its fleet in the improving market while returning seven higher-cost chartered vessels in 2019. Finally, Yang Ming’s application of innovative technologies such as Blockchain and Chatbot is expected to yield more convenient and efficient quality service.


Source: Yang Ming (JB)

Source: Yang Ming