HMM posts stable Q3 profits amid declining revenues

HMM achieves stable quarterly profits amid declining revenues

Hyundai Merchant Marine (HMM) has posted its earnings in the third quarter of 2023, indicating stability in profits.

According to the South Korean shipping company, revenue decreased 58 per cent to KRW2.12 billion ($1.6 million) in Q3 2023 from KRW5.10 billion ($3.9 million) in Q3 2022.

The operating profit stood at KRW76 billion ($58 million), with a margin of 3.6 per cent in Q3 2023. The net profit was KRW95 billion ($73 million) in Q3 2023, with a margin of 4.5 per cent in Q3 2023.

HMM has sustained profits in an adverse market environment throughout a nine-month period. Revenue from January to September came at KRW6.33 billion ($4.8 million) while operating profit was KRW542 billion ($417 million). The company’s net profit was KRW706 billion ($543 million).

According to HMM, the financial structure has not changed. The company’s debt-to-equity ratio dropped marginally to 20 per cent in September 2023 from 26 per cent in December 2022.

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Container demand is expected to be under downward pressure with no encouraging sign of restoring desire for consumption, reported HMM. This prediction originated from considerable uncertainties mainly related to widespread inflation, economic slowdown and geopolitical tensions.

The company noted that it will focus on various cost-cutting measures and enhance operational efficiency to make its business competitive amid market volatility and uncertainties.

In February, the company ordered nine methanol-fuelled 9,000 TEU containerships.

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