Box lines continue to reap record profits, HMM reports US$4.6 billion earnings in 2022 H1
Container carriers continue to achieve record financial results in the post-Covid era with HMM announcing outstanding revenue and profits this time.
The South Korean box line achieved a net profit of US$4.6 billion in the first half of the year, reporting an outstanding 1,560% increase compared to the first six months of 2021.
HMM’s revenue also increased by 87% to US$7.6 billion, while operating profit rose 153% to US$4.6 billion in the first half of 2022. At the same time, the operating margin increased to 61% from 45% in H1 2021.
The company said the main reasons for its increased earnings were continuing high freight rates and efficient fleet operations
Additionally, HMM noted that the financial structure remained strong with its debt-to-equity ratio improved to 46% in June 2022, from 73% in December 2021.
The global supply chain is forecast to remain strained in the coming months, according to HMM, which, however, said that “demand growth is expected to be under downward pressure due to considerable uncertainties mainly related to widespread inflation, rising oil prices and recurrent coronavirus situation, in addition to geopolitical tensions.”
HMM added, “Port congestion in major locations is still pervasive. In particular, growing concern about the logistics situation in North Europe is a major factor that will affect the supply chain.”
In July, the Seoul-headquartered container carrier unveiled a medium to long-term strategy to become a top-rated global shipping and logistics company.