HMM "Q2 Operating Profit 3 Trillion Won... Largest First Half Ever"

[Asia Economy Reporter Yoo Hyun-seok] HMM recorded an operating profit of 2.9 trillion KRW in the second quarter, achieving the highest-ever performance for the first half of the year.

On the 10th, HMM announced that its consolidated operating profit for the second quarter was 2.9371 trillion KRW, a 111% increase compared to the same period last year. During the same period, sales increased by 73% to 5.034 trillion KRW, and net profit surged by 1290% to 2.9331 trillion KRW.

For the first half of the year, sales amounted to 9.9527 trillion KRW, an 87% (4.618 trillion KRW) increase compared to the same period last year. Operating profit and net profit were 6.0857 trillion KRW and 6.0648 trillion KRW, respectively. Operating profit increased by 153% compared to the same period last year.

The market conditions greatly improved as freight rates rose across all routes including the Americas, Europe, and other regions. Additionally, the introduction of ultra-large vessels, route rationalization, reduction of cargo costs, and the effect of rising freight rates led both the container and bulk sectors to achieve operating profits.

The debt ratio improved to 46%, compared to 73% as of December last year. However, due to rising oil prices, fuel costs in the second quarter increased by 113.3 billion KRW to 443.6 billion KRW from 330.3 billion KRW in the previous quarter.

HMM expects uncertainties in the container sector to increase due to the resurgence of COVID-19, rising raw material prices, and interest rate hikes caused by inflation. However, for tankers, market conditions are expected to improve compared to the second quarter due to demand recovery and supply improvements. Furthermore, the continued replacement imports of Russian petroleum products in Europe are expected to maintain strong market conditions for product tankers.

HMM stated, "We will strive to thoroughly establish a future growth foundation based on customer-centered differentiated shipping services, strengthening internal capabilities through management innovation such as IT system improvements, and mid- to long-term investment strategies."