Companies/Financials

Total 184 Posts

Financials

Early 4Q Results From Asian Liners

Unlikely a surprise to the market, liners are reporting sequentially lower 4Q 2023 results, which is in line with CCFI while the QoQ rebound in SCFI will likely only show in the liners' book in 1Q 2024. While the 4Q results may not be pleasing to look at, everything changed since the second half of December. COSCO reported earning alert, OOCL reported top line breakdown while the Taiwanese liners reported their December revenue this week. COSCO alerted 68% QoQ lower earnings during 4Q while O

Companies

Kalypso Compagnia di Navigazione insolvent

Kalypso Compagnia di Navigazione (KCN), part of the RIF Line Group, has been placed in liquidation following the arrest of one of the ships it operated in Taranto on 14 December 2023. The 2,518 teu ZHONG GU XIONG AN was arrested in Taranto for unpaid bunker bills by its Chinese creditors. It was one of 4 ships chartered by Kalypso from Zhonggu for its Marco Polo service connecting China, Bangladesh and the Mediterranean that has been dormant since October 2023 after Zhonggu refused to allow the

Companies

Hapag-Lloyd 3Q

Hapag Lloyd’s earnings during 3Q fell back to the pre-2020 level. Yet. Hapag Lloyd still lead the liner peers on EBIT margin and Return on Equity (RoE).  Hapag-Lloyd has been consistently generating better EBIT margin than the other top 5 liners, save for COSCO, which are on a different set of accounting policies. The better RoE is attributable to both higher EBIT margin and better capital efficiency. Hapag-Lloyd has been cutting its fuel costs by both higher fuel efficiency and scrubber fittin

Companies

Taiwanese Liner 3Q results

Taiwanese carriers reported 3Q 2023 financial results last week with their earnings decline accelerating in spite of the volume recovery. Aggregating the liners’ top line breakdown, volume was up 4% QoQ and 2% YoY while unit revenue was down 11% QoQ and 58% YoY. Interest and liquid investment income have become a significant addition to the carriers’ bottom lines as their cash balances are now comparable to the fixed assets on their balance sheets. Several off the charts data in EMC’s 3Q result

Companies

Zim’s $2bn impairment will not be enough to lift its 4Q performance

Zim recorded a net loss of $2,270m in the 3rd quarter, due mainly to a non-cash asset impairment write down of $2,063m. Adjusted EBIT losses excluding the non-cash items stood at -$213m for an EBIT margin of -16.7% which places Zim at the bottom of the carrier EBIT margin rankings for the 2nd consecutive quarter. Zim will receive a boost to its earnings of over $150m per quarter as a result of the impairment charge due to lower depreciation expenses going forward but it will not be enough to l

Companies

3Q Results Take-Away: Liners were at breakeven point

Key take aways from the 11 liner's 3Q results. The 11 liners represent 66% global container liner capacity. Figures in the following are aggregates of the 11 liners unless stated otherwise. 1. Liners were down to breakeven point. The average EBIT margin fell to negative 0.1% or broadly operating breakeven if we exclude only the liners that have made material provisions/write-back (COSCO); inorganic growth (Evergreen); and stopped to report (CMA CGM). Including COSCO, Evergreen and

Companies

Abu Dhabi Ports in talks to acquire Meratus

Abu Dhabi Ports (AD Ports), the owner of Safeen Feeders, is reported to be in talks to acquire Indonesia’s Meratus Line in a transaction that could be valued at $2Bn. Meratus was reported to be seeking to sell its shipping and logistics business since July 2023, and AD Ports has emerged as the front runner in sales process. Meratus was established in 1957 in Surabaya, Indonesia and is the largest domestic operator in Indonesia. The company expanded its services to Papua New Guinea in February 20

Companies

Maersk pays heavy price for rate slashing strategy to regain market share

Maersk swung to a -$27m EBIT loss in 3Q 2023 but instead of shedding excess capacity, Maersk has been actively adding new capacity while slashing rates to recover market share. Maersk’s aggressive price cutting was one of the main reasons behind the dramatic drop in market rates in the 3rd quarter. Maersk’s average freight rates dropped by 14% QoQ despite having 68% of its total volumes on fixed contracts, highlighting just how aggressive its pricing actions have been as its total liftings rec

Companies

ONE reported bigger fall in earnings than previous quarters

ONE reported 3Q 2023 results where the accelerating sequential fall in earnings during the past quarter may be a surprise to the market. Unit OPEX fell 5% but unit revenue fell 14%. Nevertheless EBIT has come to a level ordinary for periods before 2020.

Companies

Matson 3Q earnings up sequentially

Being the first liner to report 3Q earnings, Matson's 3Q earnings (out on 23 Oct) showed sequential improvement from the 2Q results: container shipping earnings were up 37-43% QoQ on 4% higher container volume, suggesting over 30% QoQ increase in earnings coming from rise in average freight rates. Most of Matson's operation are done on short term contracts or spot freight rates. Matson maintains two services in its China-USWC trade since 4Q of 2022. It has blanked 3 sailings in 1Q 2023 and 2 s

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