HMM Reports Operating Profit of 3.5128 Trillion KRW Last Year, Up 501% YoY

HMM announced on the 11th that it recorded sales of KRW 11.7002 trillion and an operating profit of KRW 3.5128 trillion last year based on consolidated financial statements. This represents an increase of 39.3% and 500.7%, respectively, compared to the previous year. Net profit for the period was KRW 3.7807 trillion, up 290.3%.

16,000 TEU-class container ship HMM Nuriho. Photo by HMM

HMM explained that in 2022, a special period due to COVID-19, it achieved the third highest sales and operating profit in its history, following 2021. The operating profit margin reached 30%, proving its competitiveness in the global market, and the debt ratio remained at around 21%, maintaining a sound financial condition.

Last year, the shipping market saw freight rates rise across all routes due to geopolitical risks such as the Red Sea incident and increased cargo volume between the U.S. and China. The annual average Shanghai Containerized Freight Index (SCFI) was 2,506 points last year, a 149% increase from 1,005 points the previous year.

Riding this trend, HMM maximized profitability. Last year, it introduced 12 new 13,000 TEU (1 TEU = one 20-foot container) class container ships and deployed them on the trans-Pacific route. Along with the launch of a new Mexico route (FLX), it also established an optimal transportation service network tailored to supply and demand changes by route and region.

However, HMM expects the business environment this year to be less favorable than last year. This is due to persistent uncertainties from trade conflicts caused by U.S. protectionist tariff policies, accelerated supply chain restructuring, oversupply of container ships, and a global trade contraction, all contributing to supply-demand imbalances.

Despite these risk factors, HMM plans to continuously introduce eco-friendly container ships, including nine 9,000 TEU methanol-powered container ships. In particular, it plans to expand new services focusing on markets with high growth potential such as the Atlantic, India, and South America.

An HMM official stated, "We will continue to pursue measures to strengthen competitiveness centered on the 2030 mid-to-long-term strategy announced last year, including fleet expansion and portfolio diversification, response to environmental regulations, and digitalization."