On July 25, the world's fourth largest ocean freight forwarder and third largest air freight forwarder DSV announced its 2023 second quarter and first half results.

In the first half of the year, DSV achieved revenue of 78.681 billion Danish kroner (about 11.676 billion U.S. dollars), down 35.4 percent year-on-year; EBIT before special items (EBIT before special items) 9.377 billion Danish kroner (about 1.392 billion U.S. dollars), down 31.6 percent year-on-year.

In the second quarter, DSV achieved revenue of 37.727 billion Danish kroner (approximately 5.599 billion US dollars), a year-on-year decrease of 37.8 percent; interest, tax and special items pre-profit 4.705 billion Danish kroner (approximately 0.698 billion US dollars), a year-on-year decrease of 34.8 percent.

By business segment, DSV air and sea business first-half revenue 49.206 billion Danish kroner (about 7.302 billion U.S. dollars), down 46.3 percent year-on-year; interest, tax and special items before profit 7.2 billion Danish kroner (about 1.068 billion U.S. dollars), down 35.7 percent year-on-year.

Among them, the second quarter air and shipping business achieved revenue of 22.993 billion Danish kroner (approximately 3.412 billion U.S. dollars), a year-on-year decrease of 49.6; interest, tax and special items before profit 3.574 billion Danish kroner (approximately 0.53 billion U.S. dollars), a year-on-year decrease of 40.1.

In addition, DSV's sea cargo volume in the second quarter was 642000 TEU, down 7% year-on-year; Air cargo volume was 316000 tons, down 21% year-on-year. In the first half of the year, sea freight volume was 1.23 million TEU, down 9% YoY; air freight volume was 644000 tons, down 21% YoY.

In the first half of the year, DSV road transport business achieved revenue of 19.744 billion Danish kroner (about 2.93 billion US dollars), down 4.5 per cent from the same period last year, while interest, tax and special project profits 1.02 billion Danish kroner (about 0.151 billion US dollars), down 2.8 per cent from the same period last year.

The solutions (Solutions) business achieved revenue of 11.523 billion Danish kroner (approximately 1.71 billion US dollars), a year-on-year decrease of 4.6 per cent; interest, tax and special items pre-profit 1.161 billion Danish kroner (approximately 0.172 billion US dollars), a year-on-year decrease of 23.4 per cent.

For the first half of the performance, DSV evaluation, despite the market environment downturn, but DSV in the first half of the achieved good results.

the company believes that in the first half of 2023, global trade volume has declined, of which the most significant decline is in the air transport business sector. However, during the reporting period, DSV continued to achieve good results in all business areas through cost control and other measures.

DSV CEO Jens Bjørn Andersen said: "In the second quarter of this year, our three business segments achieved good results and achieved strong cash flow, which proves our ability to adapt to changing markets."

Jens Bjørn Andersen further analysis that the market outlook is still uncertain, but there are signs of stabilization. It is expected that in the next few quarters, global trade volume will gradually improve.

Based on the good performance in the first half of the year and the expectation that the volume of goods in the second half of the year will gradually improve, DSV will raise its interest and tax and special project profit forecast for the whole year of 2023 from 16 billion ~ 18 billion Danish kroner to 17 billion ~ 18.5 billion Danish kroner (about 2.52 billion ~ 2.75 billion US dollars).

Source: China Shipping Weekly