Hyundai Merchant Marine (HMM) has released its financial report, revealing a margin net profit increase of 12 per cent in 2023.
HMM recorded an operational profit of KRW 585 billion ($438 million) with a 7 per cent margin in 2023. In 2023, the net profit was KRW 1,006 billion ($754,012), with a 12 per cent margin.
According to the Korean shipping company, income for 2023 was KRW 8,401 billion ($6.29 million). The company’s financial structure has remained strong, with the debt-to-equity ratio falling to 20 per cent in 2023 from 25 per cent in 2022.
READ: HMM posts stable Q3 profits amid declining revenues
Overall, the slowdown in demand and the influx of new containerships led to the normalisation of the container shipping market, putting the freight rates in key trade lanes under downward pressure during 2023.
The Shanghai Containerized Freight Index (SCFI) in 2023 was 1,006 points on average, significantly down 71 per cent from 3,410 points in 2022.
Disruptions in the Red Sea region are still ongoing, and a severe drought in the Panama Canal has limited daily shipping traffic. Both problems have created widespread confusion and market volatility.
HMM will take delivery of 12 containerships with a capacity of 13,000 TEU this year, bringing its fleet capacity to 1 million TEU.
Once delivery is completed, large containerships of more than 10,000 TEU will account for 80 per cent of HMM’s fleet, substantially improving the company’s cost structure and operational efficiency.
In January, HMM held a ceremony to name HMM Garnet, one of its 13,000 TEU containerships.
