HMM, South Korea’s largest container shipping company, has reported its 16th consecutive profitable quarter, showcasing remarkable financial resilience amid the ongoing Red Sea crisis. On May 14, the company announced that its operating profit for the first quarter of 2024 soared to 100.6 billion won, marking a 63% increase from the same period in 2023, and more than doubling from the previous quarter’s 41.8 billion won.
The company’s sales for the quarter reached 2,329.9 billion won, maintaining its revenue above the 2 trillion won mark since the first quarter of 2023. Additionally, its net profit escalated to 48.51 billion won, up 63% year-over-year and 76% quarter-over-quarter.
This sustained profitability streak has been buoyed by favorable conditions in the shipping market, significantly influenced by the Shanghai Container Freight Index (SCFI), which more than doubled from an average of 969 in the first quarter of 2023 to 2,010 in the same period this year. These figures reflect a robust demand for shipping amidst global logistical challenges.
Moreover, HMM has continued to bolster its fleet, receiving several of the 12 new 13,000-TEU super-large container ships it ordered in 2021. These vessels are being gradually deployed on American routes, with full deployment expected by the end of the year.
The company also reported an improvement in its financial health, with its debt-to-equity ratio decreasing by 5.16 percentage points to 23.26% from 28.42% at the end of the first quarter in 2023.
HMM’s consistent performance highlights its strategic adaptability and operational efficiency in a volatile global shipping market. As the company continues to expand its capabilities and fleet, it remains well-positioned to capitalize on the ongoing global demand for reliable container shipping services.
