HMM Reports Q2 Operating Profit of KRW 233.2 Billion, Down 63.8% Year-on-Year

HMM announced that its revenue for the second quarter of this year was KRW 2.6227 trillion, a 1.5% decrease compared to the same period last year (KRW 2.6634 trillion). During the same period, operating profit dropped by 63.8%, from KRW 644.4 billion to KRW 233.2 billion.

For the first half of this year, revenue was KRW 5.4774 trillion, representing a 9.7% increase compared to the same period last year (KRW 4.9933 trillion). Operating profit was KRW 847.1 billion, a 19.4% decrease from KRW 1.0514 trillion in the previous year.

Yonhap News

In the first half of this year, the Shanghai Containerized Freight Index (SCFI), which reflects freight rates on global shipping routes, was cut in half compared to the first half of last year, leading to significant market instability. In particular, freight rates for the Europe and US West Coast routes fell by 43% and 34%, respectively.

In the second half of the year, market uncertainty is expected to increase due to the expiration of tariff grace periods and tariff renegotiations. HMM plans to secure a stable profit base by flexibly operating its fleet in response to supply and demand changes in each region, entering into long-term bulk cargo transport contracts, and reducing costs by improving vessel efficiency, in order to prepare for uncertain market conditions.

HMM is continuing to expand its fleet based on its 2030 mid- to long-term strategy. For container ships, delivery of the remaining 7 out of 9 methanol-fueled eco-friendly vessels with a capacity of 9,000 TEU (1 TEU is equivalent to one 20-foot container) is scheduled to be completed by the first half of 2026.

For bulk carriers, 7 pure car and truck carriers (PCTCs) ordered in 2023 will be delivered starting in September, and a total of 13 bulk vessels-including 4 multipurpose vessels (MPVs) and 2 medium-range (MR) chemical tankers-will be sequentially added to the fleet. In addition, HMM plans to purchase competitively priced secondhand vessels in line with market conditions, thereby expanding its bulk carrier fleet and diversifying its business portfolio simultaneously.