Hyundai Merchant Marine (HMM) has recorded its best-ever quarterly profits in Q1 2022 owing to higher freight rates.
The company has posted a growth in revenue by 103 per cent to KRW 4,919 billion ($3.8 billion) in Q1 2022.
The operating profit has tripled to KRW 3,149 billion ($2.4 billion) in Q1 2022 from KRW 1,019 billion ($795 million) in Q1 2021, with an operating margin growing to 64 per cent in 2022 from 42 per cent in 2021.
The net profit was KRW 3,132 billion ($2.4 billion) with a margin of 64 per cent in Q1 2022.
As disclosed, HMM is expecting an unclear outlook as global trade remains strained due to the Russia-Ukraine war and stringent lockdown measures in China.
In particular, the company anticipates high inflation pressure and contract negotiations between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) to impact the global supply chains.
On the opposite side, HMM has predicted a modest uplift in container volumes led by the easing of the lockdown in Shanghai.
HMM had a hugely successful 2021 with its net income for the year coming to KRW 5,326,192,883 ($4.4 billion) – demonstrating an impressive increase on 2020’s financial results.