ONE reported a 58% QoQ drop in net profits in the 2nd quarter of 2023, with its higher exposure on the Transpacific routes dragging down its overall profitability by a larger margin compared to CMA CGM. EBIT margins dropped to 10%, its lowest level since 2020 but net profits were boosted by net interest income due to positive cash balances (ONE does not provide balance sheet details and interest income breakdown). ONE did not provide earnings guidance for FY2023, citing low visibility. However
CMA CGM recorded a 34% QoQ and 83% YoY decline in net profits to $1.3 Bn in the second quarter of 2023 on weaker freight rates despite improved liftings that saw sequential volume increases that confirmed the trend shown in our high frequency data on weekly capacity and utilization. But CMA CGM recorded a larger QoQ sequential drop in its average revenue per teu compared to the CCFI due to contract mix and Trans-Atlantic exposure relative to CCFI. Trans-Atlantic head haul freight rates have fall
Matson provided preliminary 23Q2 results after Thursday close. Matson's ocean transportation activities will be between $78-83mn, which is nearly 3 times of the 23Q1 results but still down 80% YoY. The YoY drop is expected by the market but the sequential rebound in earnings may have come as a positive surprise to the analysts in the capital market. Matson 's operation is highly concentrated on US domestic routes in the Pacific Ocean and FE-WCNA while CCFI suggested China-WCNA freight rates ha
EMC, the listed shipping arm of the Evergreen Group, reported June revenue on 7 July where its revenue (in USD) dropped 4% MoM. In contrast, Yang Ming’s June revenue rebounded from its May low while Wan Hai’s June revenue was flat MoM. Overall, the 3 main Taiwanese carriers’ 2Q revenue fell 3% QoQ and 66% YoY. EMC was only able to avoid a decline in revenue due to the consolidation of the Evergreen Group’s non listed entities held outside of EMC (see Week 26 Market Pulse).
OOIL reported 2023 Q1 top line breakdown overnight (5 July) where its revenue dropped 9% QoQ and 63% YoY. More importantly, overall average freight rates for OOIL fell 15% QoQ and 63% YoY, comparing to CCFI's 14% QoQ and 70% YoY drop. And all four routes registered decline in average freight rates both QoQ and YoY where Transatlantic route suffered bigger sequential fall. OOIL has earned $530mn in EBIT during 1Q23 as per our computation from COSCO's disclosure. The sequential drop in average fr
COSCO provided earnings alert after market close on 4 July where COSCO expects its EBIT and profit attributable to shareholders for 1H23 to be Rmb24.5bn and Rmb16.6bn respectively. Since COSCO's EBIT and profit attributable to shareholders for 1Q23 were Rmb10.7bn and Rmb7.1b respectively, this COSCO's earning alert implies 2Q23 earnings to be higher QoQ. The sequential growth in earnings as reported by COSCO is exceptional and could not be used as read-through to the other liners earnings to be
The three Taiwanese liners' revenue (in USD) in May rose 2% MoM but fell 65% to $1,388mn in aggregate, which is comparable to the levels in August and September in 2020. The three Taiwanese liners in aggregate delivered $581mn operating profit in 3Q 2020 on $384mn fuel expenses and $321/ton average fuel price. The latest fuel expenses in 1Q 2023 was about $700mn on $631/ton average fuel price.
Container liftings for main carriers fell 6.8% YoY in 1Q 2023, accelerating from the 6.6% YoY fall in 4Q. All 9 of the main carriers recorded volume reductions, with Zim and Maersk recording the largest drops. The aggregate liftings of the 9 carriers in 1Q 2023 were even lower than the 2Q 2020 level during the first COVID wave. Despite the of the continuous improvement of the vessel turnaround time on the easing of port congestion, liner’s volume yield (liftings per slot) has continued to fall
Zim reported losses for 1Q 2023 before market open today (22 May). Both net profit and operating profit level were negative. While the accounting operating cashflow is positive, the depreciation expenses, which are added back for the operating cashflow since 2019, were mostly lease expenses and hence are cash items. Management maintains full year guidance which for EBIT is $100-500m, against $14m LBIT in 1Q. Zim is the second major liner, after Wan Hai, to have reported losses in 1Q 2023. Bo
Results out after market on 15 May. The fall in aernings and the mid-teen EBIT margin are broadly in line with Asian liner peers already reported. But what may have gone unnoticed in the market is that HMM has quietly took the lead in having the lowest slot costs. HMM has been operating a fleet of larger average vessel size since 2016. The dramatic development between 2018 and 2020 for HMM was due to its improvement in fuel efficiency (e.g. scrubber retrofit) and reduction in dependence on cha