Kim Kyung-bae, CEO of HMM, stated at the regular shareholders' meeting held on the 28th, "The proportion of ultra-large vessels with a capacity of 10,000 TEU (1 TEU equals one 20-foot container) is 78% based on fleet capacity, the highest level among global shipping companies," adding, "We have established a solid foundation that enables economies of scale and structural improvement."
At the meeting, where Kim presided as chairman, he said in his greeting, "We are sequentially receiving and deploying 12 container ships of 13,000 TEU ordered in 2021, and once all are delivered by the end of the year, the fleet capacity will reach about 1 million TEU."
Recently built vessels are praised for being environmentally friendly with improved fuel efficiency while increasing in size. Despite the worsening external business environment, HMM's strong performance is attributed to the deployment of ultra-large vessels and the introduction of new services.
Referring to the company’s 15 consecutive quarters of profitability, Kim said, "Although it decreased compared to the record high performance in 2022 due to the COVID-19 boom, it was a year that proved our competitiveness at a global top-tier level," adding, "This is the result of continuous efforts to strengthen global competitiveness since the turnaround after the downturn in 2020."
At the meeting, HMM resolved to increase the cash dividend from 600 KRW per share to 700 KRW per share, adding 100 KRW according to the amended consent proposal submitted by creditors Korea Development Bank and Korea Ocean Business Corporation. The reappointment of CEO Kim and Vice President Park Jin-gi as inside directors was approved as originally proposed, each for a one-year term. The agenda to appoint three outside director candidates was also passed.
A promotional video is playing on the screen installed at the HMM headquarters in Yeouido, Seoul. [Photo by Yonhap News]
Some minority shareholders criticized the stock price for not meeting expectations and the low dividend. Kim responded, "The dividend yield is about 3.4%, which is not low compared to the average of domestic companies," and added, "If we distribute all profits as dividends and spend them all, the company could face difficulties during tough times." He also said, "(The share buyback or cancellation requested by some shareholders) is a disposal right related to treasury shares held by major shareholders, not the company," and added, "If there are parts you are not satisfied with, you should appeal to the major shareholders."
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