HMM reports 2.6 trillion won net in third quarter

HMM’s container vessel sails from Busan Port. [YONHAP]

HMM reported a net profit of 2.6 trillion won ($1.9 billion) in the third quarter, up 13.3 percent on year and surpassing analyst expectations.

Analyst expectations compiled on FnGuide indicated the shipper will log a net profit of 2.44 trillion won.

It reported revenue of 5.1 trillion won, up 27.1 percent on year and surpassing expectations of a 4.58-trillion-won revenue.

Operating profit rose 14.5 percent on year to 2.6 trillion won.

The shipper said high fuel costs ate into its profits, which rose 74.2 percent on year in the third quarter, but it was still able to post growth due to rising shipping demand and achieving efficiency in its shipments.

Rates weren’t favorable for the company either, with the average Shanghai containerized freight index in the third quarter falling 24 percent on year to 3,279. The index could fall even further in the fourth quarter. The average index between Oct. 1 and Nov. 4 was 1,717, compared to an average of 4,312 in the fourth quarter of 2021.

The shipper said the outlook for the fourth quarter is gloomy, with less shipping demand due to people purchasing less due to high interest rates, and more products being stocked up in their inventories.

Despite less demand, the company said it will try to negotiate with companies it currently ships for and sign more long-term deals that will ensure profits in the long-run.

HMM will soon receive three oil tankers, through which it will try to boost business by also inking crude shipment deals.

The company’s shares traded at 20,500 won, down 0.73 percent compared to the previous day.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]