HMM closed 2020 with significant earnings boost
South Korea's national flagship carrier HMM closed 2020 with a big earnings gain amid the negative impact of COVID-19.
An operating profit of $831.1 million was posted by the shipping company in 2020, against a loss of $254 million in 2019. The outcome recorded in 2020 represents the highest operating profit ever for HMM, the company said.
In 2020, the net profit of the carrier was $105 million versus a loss of $499.8 million in 2019.
“HMM significantly improved earnings in 2020, primarily driven by efficient fleet operations including twelve 24,000 TEU containerships, increased freight rates, and lower fuel prices. The scarcity of containers and space on vessels will last through at least the first quarter of this year, with a likelihood that this situation continues until late spring. Supply chain disruptions led mainly by a backlog of containers and terminal congestions at several main ports are on course to remain unabated over the short term,” the company stated.
HMM further said that with the gap between low and high sulphur fuel, oil prices are steadily increasing again, recovering to more than $100 recently. Because of this, HMM sees scrubbers as a viable choice in terms of economic viability in preparation for IMO 2020 environmental regulations.
HMM will buy eight 16,000 TEU newbuild boxships for the first half of this year. It is anticipated that the acquisition will enable HMM to form an enhanced cost structure with lower fixed costs and greater operational performance.
From the second quarter of 20211, the eight new vessels built at the Hyundai Heavy Industries shipyard in South Korea will be deployed on the Asia-US East Coast route.
Maritime Business World