Yang Ming reports financial results for Q1 2024

Yang Ming reported first-quarter 2024 revenue of US$ 1.39 billion and net profit after tax of US$ 298.42 million with EPS of NT$ 2.69.

Yang Ming said that in the first three months of the year, the supply chain of the container shipping industry faced challenges from the Red Sea crisis, causing ships to divert to the Cape of Good Hope, which absorbed ship capacity. Meanwhile, demand improved thanks to gradually improving manufacturing PMIs of major economies, inventory drawdowns on the customer side and manufacturers resuming production after the Lunar New Year. Overall, the company achieved positive results in Q1.

According to Yang Ming, "The Organization for Economic Cooperation and Development (OECD) upped the global GDP growth rate for 2024 by 0.2% from February's forecast to 3.1% on 2nd May. Despite the steady growth of global economy, geopolitical risks persist. Furthermore, the U.S., India, and other emerging markets are showing strong signs of recovery. With fiscal stimulus measures, China's economic growth is expected to surpass expectations, and inflation is easing in most economies. Major central banks worldwide may consider cutting interest rates to boost household purchasing power and economic growth. Nonetheless, potential geopolitical conflicts escalating could disrupt energy and financial markets, impacting the global economy significantly."

According to Alphaliner, capacity supply growth in 2024 is expected at 9.7%, exceeding demand growth at 3%. However, uncertainties remain in the maritime industry, with geopolitical factors causing ship delays and port congestion. Furthermore, shipping restrictions through the Panama Canal continue despite improved water levels.

According to Yang Ming, these conditions are expected to last until 2025, affecting the stable supply of ships and services. The company said it will continue to “cautious and actively adjust business strategies for vessels, containers, and terminals to provide global customers with stable and efficient transportation services.”
 

Source: Phaata.com (According to Yang Ming) 

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