Taipei-based Wan Hai Lines, a player in the global shipping industry, has disclosed a staggering net loss of -TWD 5.8 billion (USD 183.2 million) for the fiscal year 2023. This represents a stark contrast from the previous year’s performance, wherein Wan Hai had reported a net income of TWD 93.1 billion (USD 2.9 billion), according to Alphaliner.
The financial report unveiled a significant decline in revenues, plummeting by 61% year-on-year to TWD 100.2 billion. Even more concerning was the revelation of net operating losses (EBIT) reaching -TWD 6.3 billion. Wan Hai’s financial distress was further emphasized by its operating expenses, which exceeded revenues, resulting in a gross loss from operations. This anomaly in the industry was notably uncommon for Wan Hai, which has been actively expanding its fleet, having taken delivery of 50 ships since 2021.
Despite its global ranking as the eleventh largest carrier, Wan Hai reported operating losses throughout all four quarters of the year. In light of these financial challenges, the company has announced plans to initiate a corporate bond issue in a bid to secure fresh capital. It aims to raise up to TWD 10 billion (USD 315 million) through this endeavor, with the intention of utilizing the proceeds to repay existing debts and fortify the financial resilience of the company.
The announcement of Wan Hai’s substantial annual loss underscores the prevailing challenges faced by the maritime industry amidst fluctuating market dynamics and operational complexities. As the company charts its course forward, the success of its fundraising efforts and the subsequent utilization of funds will be closely monitored by industry observers and stakeholders alike.
This move by Wan Hai reflects its proactive approach to addressing financial setbacks and reaffirms its commitment to navigating the turbulent waters of the global shipping landscape.
Source: Wan Hai Lines, Alphaliner
