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Wisdom Marine Lines Reports Robust First Half Revenue and Profits

Optimistic Outlook for the Second Half as Market Conditions Stabilize
Taiwan
w 2637.TW Mid and Small Cap 2000
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Wisdom Marine Lines announced consolidated revenue of NT$1.834 billion for June, with an operating profit of NT$724 million and pre-tax earnings of NT$618 million, translating to a self-financed pre-tax earnings per share of NT$0.83. The company’s cumulative revenue for the first half of 2024 reached NT$10.224 billion, with an operating profit of NT$3.548 billion and a pre-tax profit of NT$3.215 billion, resulting in a self-financed pre-tax profit per share of NT$4.31.

Looking ahead to the second half of the year, Wisdom Marine Lines maintains a cautiously optimistic outlook. The company highlighted that despite the onset of the summer vacation period in European and American markets, bulk shipping price indexes have remained relatively stable, suggesting continued solid performance.

Wisdom Marine Lines noted that the small and medium-sized freight rate index, which dipped slightly in late May, began recovering in June, contributing to a stable and upward trend in the second quarter. The company achieved an operating profit rate of 39% in June, the highest this year, with a second-quarter average of 38%. The bulk shipping market showed resilience during the Lunar New Year, maintaining a high freight index base period and supporting profit growth in the first half of the year.

In fleet operations, Wisdom Marine Lines successfully delivered four new ships this year, all under stable leases exceeding three years, with an average gross profit margin of 50%. The company focuses on energy-efficient ships, complying with the latest NOx emission standards, which are preferred by charterers and offer competitive rental advantages. Wisdom Marine Lines plans to strategically dispose of older vessels to optimize fleet capacity and financial structure.

Despite global challenges such as political instability, the ongoing Ukraine-Russia conflict, and the unresolved Red Sea crisis, Huiyang remains optimistic about market prospects, bolstered by low new bulk ship deliveries and favorable market conditions.

 

 

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