Shipping lines continue to reap record profits, HMM achieved a profit of USD 4.6 billion in H1 2022
HMM shipping line achieved a net profit of $4.6 billion in the first half of 2022, a very strong increase of 1,560% compared to the first 6 months of 2021.
Container ship of HMM Shipping Line (Photo: HMM)
Container carriers continue to achieve record financial results in the post-Covid era with HMM posting strong increases in revenue and profit this period.
HMM - Korea's container shipping line - achieved a net profit of $4.6 billion in the first half of the year, reporting a very strong increase of 1,560% compared to the first 6 months of 2021.
HMM's revenue also increased 87% to $7.6 billion, while operating profit increased 153% to $4.6 billion in the first half of 2022. At the same time, operating profit margin increased to 61% from 45% in the first half of 2021.
The carrier said the main reason for the increase in profit is the continued sale of high freight rates and efficient fleet operations
In addition, HMM noted that the financial structure remained stable with the debt-to-equity ratio improving to 46% in June 2022, from 73% in December 2021.
HMM financial results in H1 2022 (Source:HMM)
According to HMM, global supply chains are forecast to continue to be strained in the coming months, however, according to HMM, "demand growth is expected to be under downward pressure due to considerable uncertainties mainly related to widespread inflation, rising oil prices and recurrent coronavirus situation, in addition to geopolitical tensions."
HMM added, "Port congestion in major locations is still pervasive. In particular, growing concern about the logistics situation in North Europe is a major factor that will affect the supply chain."
In July, the Seoul-based container shipping company announced a mid- to long-term strategy to become a top-rated shipping and logistics company globally.
- HMM to invest $7.64 billion in ships, ports and logistics facilities
- HMM, SM Line and Pan Ocean launch first service under K-Alliance
- Rising freight rates help HMM reach a profit of $4.4 billion in 2021
Source: Phaata.com (According to ContainerNews)