HMM Records Total Revenue Of KRW 1,313.1 Billion For Q1 2020

Total revenue in Q1 2020 decreased 0.2% (- KRW 2.8 billion) YoY to KRW 1,313.1 billion and operating profit improved 98.1% (+ KRW 103.7 billion) YoY to KRW – 2 billion.

Net profit in Q1 2020 improved 63.2% (+ KRW 112.9 billion) YoY to KRW 65.6 billion.

Container handling volumes in Q1 2020 decreased 18.7% (- 0.2 million TEU) YoY to 0.89 million TEU due to the supply-side disruptions for five weeks, mainly in China.

Image Credits: hmm21.com

Despite negative impacts led by the spread of the COVID-19, HMM’s profitability has enhanced attributed to cost-saving efforts, optimal utilization of five VLCCs and securing high-yield cargos in addition to strong freight rates in the Middle East and India trade lanes.

Outlook

The knock-on effects of the COVID-19 pandemic still persist. Trade volumes are expected to be weakened as a result of demand-side impacts in the US and Europe as well as continued lockdown worldwide. Rising concerns over the US-China trade tensions related to geopolitical risks also can intensify the situation.

The tanker business resides in a relatively favourable environment given low oil prices and continued strong demand for floating storage.

Image Credits: hmm21.com

HMM will focus on maximising profitability through securing lucrative contracts, optimising fleet operation and expanding cost-saving plans.

24,000 TEU-class container ships will be stably operated based on the seamless cooperation with THE Alliance members. And, HMM will respond flexibly to market fluctuation in line with rationalisation of service products being implemented by THE Alliance.

HMM strives to react to uncertainties caused by the COVID-19 pandemic in a real time through a COVID-19 response war-room launched as part of a risk management strategy.

Press Release

Source: Maritime Shipping News