HMM PLUNGES FURTHER INTO RED
South Korean shipping company Hyundai Merchant Marine (HMM) posted a net loss of KRW 734.6 billion (USD 653 million) in the first quarter of this year sinking further from a loss of KRW 276 billion reported in 2016.
The poor results were ascribed to lower charter rates that plagued the market during the quarter and higher fuel costs. However, better market conditions are expected for the remainder of the year.
HMM’s operating loss reached KRW 131.2 billion, narrowed from the previous year’s KRW 163 billion. Furthermore, the shipping company’s sales were also up by 7 percent standing at KRW 1.302 trillion.
During the quarter, HMM’s containerships handled 958,000 twenty-foot equivalent (TEU) containers, a 37 percent increase year-on-year, with markets in North America and Asia recording the biggest spikes, 41.4 percent and 62.4 percent respectively.
The results come following HMM’s recent strategic investments into new terminal operations and newbuilding tonnage.
Namely, just last week HMM reached an agreement to buy a 100 percent stake in Spain’s Total Terminal International Algeciras (TTIA), earmarking around USD 104.1 million for the stake in the terminal.
The company also decided to avail of the low newbuilding prices last month and ordered five 300,000 dwt very large crude carriers (VLCCs) from the compatriot Daewoo Shipbuilding & Marine Engineering (DSME) with an option of five more vessels.
World Maritime News Staff