RCL reports ‘phenomenal’ US$113m Q3 net profit
THAI-BASED intra-Asia carrier Regional Container Lines (RCL) has posted a record US$113 million net profit for the third quarter – but, like for all carriers, its operating costs are soaring.
RCL described the result as “another phenomenal profit”, beating the previous record of $102 million achieved in the quarter before, reports UK’s The Loadstar.
Revenue for Q3 came in at $282 mllion, compared with $135 million for the same period of last year, for a cumulative nine month turnover of $767 million, against $382 million for the year before.
RCL’s net result for the quarter was up by a massive 1,300 per cent on the previous year, with its average rate spiking to $490 per TEU across its myriad of inter-connected regional services of shipper-owned, feeder and domestic container business.
Although RCL did not disclose its liftings for the third quarter, its revenue and average rate per TEU suggests the line’s services had carryings of some 575,000 TEU during the period.
The only concern for the 1979-founded Thai Stock Exchange-listed group is soaring operating costs, which despite its endeavours to cap increases, saw the operating expenses leap 20 per cent on the previous quarter and by 42 per cent year on year.
RCL attributed the cost increases to charter and bunker costs and the impact on voyage returns from increased port congestion.
RCL, the 22nd-ranked largest carrier with, according to Alphaliner data, an operating fleet of 39 vessels for a capacity of 80,000 TEU, appears to have a low exposure to the charter market, with just seven vessels on charter, supplemented by some ad hoc charters.