Taiwan's three major shipping companies Evergreen Shipping, Yangming Shipping and Wanhai Shipping, recently announced the first quarter of 2023 results, Evergreen Shipping, Yangming Shipping net profit fell sharply, Wanhai Shipping performance losses.
In the first quarter, Evergreen Shipping achieved operating income of NT $66.827 billion (approximately US $2.17 billion), compared with NT $170.825 billion in the same period last year, a year-on-year decrease of 61%; net profit attributable to the parent company's owners was NT $5.043 billion (approximately US $0.164 billion), compared with NT $101.36 billion in the same period last year, a year-on-year drop of 95%.
Although the performance of the fell sharply, Evergreen Shipping did not stop the pace of capacity adjustment. Recently, the company is bidding for 24 orders for 16000TEU methanol-powered container ships, with an investment of about 4 billion US dollars.
In the current shipping market is facing multiple uncertainties in the background, Evergreen Shipping plans to large-scale shipbuilding, from the side to see its market prospects are still relatively optimistic.
Evergreen shipping general manager Xie Huiquan has made it clear: "is expected in the second quarter of 2023 the market is still at the bottom, but slightly better than the first quarter, the market is expected from June began to pick up, the second half of 2023 will be significantly improved. We on the future operation still have confidence."
Yangming Shipping achieved operating income of NT $36.953 billion (approximately US $1.22 billion) in the first quarter, compared with NT $106.704 billion in the same period last year, a year-on-year decrease of 65%; net profit attributable to the parent company's owners was NT $3.401 billion (approximately US $0.112 billion), The same period last year was NT $60.577 billion, a year-on-year drop of 94%.
Regarding the results of the first quarter, Yangming Shipping said that due to the Lunar New Year holiday, factory adjustment of transportation plans, manpower allocation and other factors, the shipping schedule was delayed and the operation was restricted in the shipping market, resulting in a decline in operating income. As various industries gradually returned to normal in March, the overall volume increased slightly.
Yangming Shipping analyzed that the shipping market has shown signs of recovery. If the global supply chain continues to digest inventory in the second half of the year and can maintain the traditional peak season, it will have a positive impact on performance. However, taking into account geopolitical, regional economic, international legal and other market uncertainties, appropriate caution and response measures are essential.
In addition to announcing the results, Yangming Shipping also announced that it would order five 15000TEU LNG dual-fuel container ships with a total amount of 0.85 billion -0.975 billion US dollars.
Yangming Shipping said that these new ships can optimize its fleet configuration, enhance the overall competitiveness of the fleet, and reduce energy consumption and carbon emissions to achieve sustainable development and environmentally friendly operations.
Evergreen Shipping and Yangming Shipping, although their net profits were greatly reduced, remained profitable, while Wanhai Shipping suffered losses.
In the first quarter, Wanhai Shipping achieved operating income of NT $25.558 billion (approximately US $0.83 billion), compared with NT $80.503 billion in the same period last year, a year-on-year drop of 68%; the net profit attributable to the parent company was a loss of NT $2.118 billion (Approximately 68.78 million US dollars), the same period last year was a profit of NT $40.612 billion.
this is the second consecutive quarterly loss for Wanhai Shipping. In the fourth quarter of 2022, Wanhai Shipping lost NT $40 million (approximately US $1.32 million), the first loss since the second quarter of 2017.
Wanhai Shipping General Manager Xie Fulong said in April this year that he has seen the decline in freight rates slow down, and shipping companies have also achieved results in promoting the increase in freight rates on offshore routes. It is expected that the market performance in the second and third quarters of this year will be better than that in the first quarter.
Source: Ningbo Shipping