Dafei's second-quarter logistics business revenue was 3.8 billion US dollars; EBITDA was 0.356 billion US dollars, up 4.7 percent year-on-year.
Dafei July 28, 2023 second quarter results.
Although the second quarter of transport demand compared to the first quarter has rebounded, and energy prices are low, but the second quarter of the shipping logistics market is still relatively low.
During the reporting period, Dafei achieved operating income of US $12.3 billion, mainly driven by shipping business, down 37% YoY; EBITDA (EBITDA) was US $2.6 billion, down 73% YoY; net profit was US $1.3 billion, down 83% YoY.
Among them, the shipping business achieved operating income of US $8.4 billion, down 48% year-on-year; EBITDA was US $2.2 billion, down 76% year-on-year. The average freight rate was $1491/TEU, down 10%.
In terms of volume, Dafei said that the volume of the north-south route is relatively strong, but the volume of the trans-Pacific and Asia-Europe routes is affected by the reduction in household consumption expenditure and continues to be sluggish. In the second quarter, Dafei's cargo volume was 5.6 million TEU, a slight decrease of 0.3 percent year-on-year, but compared with the first quarter, the volume rebounded by nearly 12%, reflecting the seasonal characteristics of the shipping industry and the rebound in demand.
In the logistics business, the operating income was 3.8 billion US dollars, the same as the same period last year; EBITDA was 0.356 billion US dollars, a year-on-year increase of about 5%.
In this regard, Dafei analysis said that in the context of the global trade decline, the logistics business performance is stable, which not only reflects the decline in the freight market, but also shows that since the second quarter of 2022, Dafei in the logistics field of a number of acquisitions, strengthen customers to provide end-to-end supply chain services.
Commenting on the results, Dafei Chairman and CEO Rodolphe Saadé said: "As expected, the shipping industry continued to normalize in the second quarter, and despite the difficult market environment, our performance remained strong. In recent years, we have significantly strengthened our two strategic pillars of shipping and logistics. On this basis, we will continue to transform, integrate recently acquired subsidiaries, and increase investment."
also highlighted its continued investment in the energy transition. It will invest more than US $14 billion, own more than 100 LNG and methanol-powered container ships, and diversify its energy mix with the goal of achieving net zero carbon emissions by 2050. In addition, through the establishment of the Dafei Energy Fund, accelerate the sea, land, air and logistics business energy transformation.
Looking forward to the second half of 2023, Dafei believes that the macro-economy and geopolitics are still full of uncertainty, and the shipping logistics market is full of challenges. Global economic growth remained slow in the second half of the year, while new inputs into the shipping market increased capacity, which could drag down freight rates, especially on east-west routes.
However, Dafei is still confident in resisting market fluctuations and stressed that it will pay special attention to controlling operating costs.
Source: China Shipping Weekly