Wan Hai Lines Ltd. approved a cash dividend of NT$3.5 ($0.11) per share despite posting its third-highest profit in company history, citing market uncertainties and significant planned capital expenditures.
The Taiwanese container shipping firm reported full-year 2024 consolidated revenue of NT$161.8 billion ($4.9 billion), a 61.4% increase year-over-year, with net income attributable to the parent company reaching NT$47.4 billion ($1.44 billion). This translated to earnings per share of NT$16.89, representing a dividend payout ratio of just 20.7%.
Market observers questioned the conservative dividend policy, but Wan Hai defended its approach, pointing to U.S. tariff policy uncertainties, geopolitical risks in Ukraine and the Middle East, and ongoing Red Sea navigation concerns.
The company plans to take delivery of 30 new vessels between 2026 and 2030 at a cost of $3.36-4.33 billion, including vessels with capacities ranging from 7,000 to 16,000 TEU.
For 2025, Wan Hai cautioned that trade policy uncertainties continue to affect import-export conditions, though the company will receive three 13,000 TEU newbuilds this year while phasing out older vessels and returning high-priced chartered ships to improve competitiveness.
Global container shipping volume increased 6% in 2024 to 183 million TEU, according to Container Trades Statistics Ltd., with North American imports up 12%.
