Evergreen Marine Corp Reports Strong Financial Performance Amid Non-COVID Era
Evergreen Marine Corp, based in Taipei, Taiwan, has announced robust quarterly profits, marking one of its strongest performances in the non-COVID era. The carrier reported earnings before interest and tax (EBIT) of TWD 15.7 billion (USD 483 million) in the first quarter, a notable increase from the TWD 4.9 billion profit in the previous quarter and a 29% rise compared to the same period last year.
Revenue for Evergreen surged by 33% year-on-year to TWD 88.6 billion, with net profit reaching TWD 17.4 billion, marking a substantial 245% increase from the previous year. While the carrier did not disclose average rates per twenty-foot equivalent unit (TEU), its competitor, HMM, revealed a 27% year-on-year increase in rates during the quarter.
Operating primarily on East-West trade routes, Evergreen attributes its strong performance to rising head haul rates out of China, which have surpassed the market average. Unlike many competitors, Evergreen managed to stay profitable throughout 2023.
HMM Records Highest Operating Profit Since Q4 2022
South Korea’s HMM reported its highest operating profit in five quarters for the January-March period, reaching KRW 350.1 billion (USD 256 million) on its container activities. This marked a significant increase from the KRW 12 billion logged in Q4 and represented the carrier’s best result since Q4 2022.
Despite a slight decrease in volumes compared to the previous quarter, HMM experienced nearly 50% higher rates, averaging USD 1,350 per TEU, and a 27% increase compared to the previous year. The carrier attributed these results to market balance amidst high deliveries, a recovering US economy, and the impacts of the Red Sea crisis.
To address market conditions, HMM plans to engage in vessel exchange cooperation, expand its network, and participate in new routes.
Yang Ming and Wan Hai Lines Return to Profit
Taiwan’s Yang Ming and Wan Hai Lines also reported positive financial results. Yang Ming posted a strong operating profit of TWD 7.9 billion for Q1, marking a return to profitability after experiencing losses in the previous quarters. Similarly, Wan Hai Lines reported its highest operating profit since Q4 2022, signaling a turnaround after five consecutive quarters of losses.
Both carriers cited factors such as recovering rates and improved economic indicators as contributing to their positive performance. However, they remain cautious due to ongoing vessel oversupply and geopolitical uncertainties.
Overall, these financial reports indicate a positive trend for container carriers, with several smaller lines returning to profitability amidst evolving market conditions.
Source: Alphaliner
