Yangming Shipping released its 2023 first-quarter financial results. During the period, the company realized a consolidated operating income of NT $36.953 billion, an after-tax net profit of NT $3.401 billion, and an after-tax EPS of NT $0.97.
Yangming Shipping said that the continued war in the global market, the US Federal Reserve's interest rate hike and customers' existing inventories all affected the global economic recovery, resulting in a decline in global market demand. In addition, the shipping market in the first quarter was affected by the Lunar New Year. The factory adjusted its delivery plan and manpower allocation to cope with the delivery delay and operation restriction caused by market demand, resulting in a decrease in revenue for the whole quarter. However, the industry resumed work in March, as a result, overall operating volume increased slightly and maintained positive operating performance in the first quarter.
According to the latest shipping market supply and demand growth forecast of the well-known maritime consulting agency Alphaliner, the supply will grow to 8.3 and the demand will grow to 1.4 in 2023. The market still shows an oversupply situation, but the ship supply side is still affected by the increasingly stringent international environmental protection regulations. Global shipping companies may reduce the speed of ships or accelerate the replacement of old ships to meet the regulations, which will help the supply and demand to be more balanced, IMO will discuss in July whether to set stricter greenhouse gas emission targets and carbon reduction issues, which may affect the future supply side of ships. In addition, according to the latest Alphaliner data for April this year (2023), about 4.4 per cent of the world's container fleet is idle, which is continuously shrinking from the recent peak of 6.4 per cent. It is expected that the freight demand in the shipping market will show signs of warming up. The global supply chain inventory will be continuously digested and maintained in the following half of the year, which will be positive for the operating performance; in addition, geopolitical changes, regional economic development and uncertainty of international environmental regulations still affect the global shipping market, which needs to be dealt with carefully.
In addition, Yangming Shipping's global fleet deployment plan echoes the net zero emission reduction requirements. In response to the Yangming Shipping Board's approval of the order plan for five new LNG-powered dual-fuel container ships, after an open and transparent international selection and bidding process, the Board of Directors today authorized to negotiate the signing and construction of new ships to optimize the fleet configuration. In addition to enhancing the fleet competitiveness, it can also save energy and reduce carbon to implement environment-friendly sustainable management objectives.
Source: Shipping Industry