ZIM has slashed its 4Q 2022 EBIT earnings forecast to $440m from $740m, compared to $1,554m in 3Q 2022 due to falling freight rates and weaker liftings. Although ZIM has emphasized its commercial and operational agility, this will be tested over the next 2 years as it takes delivery of more than 50 newbuildings and committed vessel charters that will raise its operated capacity by some 70% (before charter redeliveries). Zim’s heavy reliance on chartered tonnage since its financial restructurin
ZIM reported before US market open on 16 Nov. Net profit was down 13% QoQ on sequentially lower freight rates, lower volume and higher costs particularly in chartering expenses. In the earnings call, the management mentioned that they have lower the signed freight rates in the existing contracts.
Wanhai reported after Friday (11 Nov 2022) closed. Net profit dropped 42% YoY and 28% QoQ. Not much surprises since the top line has been reported few weeks ago and the QoQ quantum drop in pre tax earnings eg NTD12bn is similar to the top line QoQ drop. Liners with less contracted business ratio is still see greater earnings drop near term.
Hapag Lloyd reported 3Q results before Europe opens on 10 Nov 2022 with a set of strong earning results. Full quarter effect of new contracted rates and Transatlantic exposure pushed earnings higher QoQ. Management keeps FY guidance unchanged, suggesting 4Q EBIT to fall 17% QoQ.
EMC, YMM and WHL reported October top line. In aggregate, which provide better read through for the industry, revenue in USD fell 15% MoM and 33% YoY, probably would be taken as positive surprises since the fall is less than CCFI. As additional context for this set of October figures, the Taiwanese liners' revenue fell more more than CCFI during September.
Maersk reported 3Q before market open today (2 Nov 2022). Earnings turned out better than expected (BTE) but guidance stayed unchanged, suggesting a bearish outlook. BTE 3Q Results: EBIT $9.48bn, up 5% QoQ and 62% YoY, beat Bloomberg consensus estimate of $8.63bn. The BTE earnings were due to higher contract freight rates. During the period, Maersk continued to experienced costs increase particularly in bunker and depreciation, which including chartering. Maersk's 3Q volume dropped 8% YoY and 3
Poseidon Acquisition Corp, an entity formed by ONE together with the 3 controlling shareholders of Atlas (Fairfax Financial Holdings, the Washington family and David Sokol, chairman of Atlas) have entered into a definitive agreement on 1 November 2022 to acquire Atlas in an all-cash transaction for an enterprise value of $10.9 Bn. Poseidon will acquire 32% of the outstanding common shares of Atlas not owned by the 3 controlling shareholders for $15.50 per share in cash, which represents a 34% p
TS Group, the parent company of TS Lines, has filed for an Initial Public Offering (IPO) in Hong Kong on 28 October 2022, following similar plans by CUL and LC Logistics (parent of BAL). According to information provided in its IPO filing, the intra-Far East trade accounted for 42% of TS Line's total revenues in the first half of 2022, and the share has shrunk from 95% in 2019 and 92% in 2022 to the current 42%, due to the growth of Asia-Oceania and Transpacific which currently account for 26
ONE reported better-than-expected 22Q3 (Company's FY22Q2) results during lunch break today (31 Oct 2022) but guided beginning of an earning down cycle. Net profit for 22Q3 was $5.5bn, up 31% YoY but flat QoQ. We have expected 10-20% QoQ drop in earnings for the industry for 3Q. The positive surprises came from the average freight rates which was up 5% YoY, beating the 7% QoQ drop in CCFI on likely two factors: (1) accounting delay in revenue booking because ships, particularly those in the l
COSCO reported full 3Q results after Friday (28 Oct) close, being the first top ten liner to report. The 16% sequential drop in earnings were already disclosed on 10 Oct's earning alert. Drivers to the sequential drop in earnings during 3Q were 11% QoQ increase in operating costs and 4% QoQ drop in volume. In other words, unit costs increased by 16% QoQ. Surprisingly, COSCO's average freight rates were up 1% QoQ during 3Q. Most of the impact from the collapse in spot freight rates since summer w