Star Shipping lowered its 2023 full-year performance forecast to an adjusted EBITDA of 1.2 billion -1.6 billion USD and an adjusted EBIT of a loss of 0.5 billion -0.1 billion USD.
On July 12,, Star Shipping issued an announcement announcing a cut in its full-year 2023 earnings forecast. This is also the first official announcement to lower the full-year results expected liner company.
When Yixing announced its first quarter results in May, it made it clear that the 2023 adjusted EBITDA was 1.8 billion -2.2 billion US dollars and the adjusted EBIT was 0.1 billion -0.5 billion US dollars.
However, according to the latest performance forecast, the adjusted EBITDA is 1.2 billion ~ 1.6 billion US dollars and the adjusted EBIT is a loss of 0.5 billion ~ 0.1 billion US dollars.
For the sharp reduction of its full-year performance forecast, Yixing explained that it was mainly due to the continued weakness of freight rates on all routes of the company, especially the trans-Pacific route. At the same time, due to the expected future transportation demand continued to be sluggish, so the market situation in the second half of 2023 will not improve.
It is understood that the current trans-Pacific route transport demand continues to be sluggish, including Mediterranean shipping, Hapg-Lloyd, ONE, HMM, Yangming shipping, Wanhai shipping and other liner companies, has been on the route to reduce capacity scale.
In response to performance expectations, Eli Glickman, President and CEO of Estar Shipping, explained, "In the near term, the container shipping market remains challenging and transportation demand is expected to continue to be sluggish for the rest of the year. While Estar's second-quarter results were largely in line with expectations, we no longer believe that freight rates in the second half of 2023 will be as seasonally aligned as previously assumed."
Eli Glickman went on to say that during the economic downturn, Estar will continue to actively manage and optimize its fleet and services to maximize its cash position. At the same time adhere to the customer-centric approach. Looking ahead, Yixing's newbuilding, especially liquefied natural pneumatic newbuilding, has good cost-effectiveness and fuel efficiency, which can significantly improve Yixing's cost structure and competitive advantage.
Eli said in the first quarter of Glickman that although the macroeconomic and market environment is not optimistic for the time being, it is expected to have a positive EBIT in 2023. At that time, he also expected that enterprises would start to replenish inventory in the second half of the year, which in turn could promote a recovery in demand and improve freight rates.
Source: China Shipping Weekly