Companies/Financials

Total 218 Posts

Companies

Maersk remains worst performing carrier for the 3rd consecutive quarter

Maersk continues to underperform the rest of the market with the lowest EBIT earnings margins in the 2nd quarter of 2024 compared to all of its main publicly listed peers. Maersk’s Ocean shipping segment recorded EBIT margins of just 5.6% for the quarter compared to an average margin of 21.3% posted by 8 of its main rivals with only COSCO and OOCL yet to report their earnings figures. It marks the 3rd consecutive quarter that Maersk was placed at the bottom of the earnings league table, with i

Companies

Carriers heading for bumper 3Q profits

Container carriers’ total revenue rose by more than 100% in July compared to a year ago, with the 3 main publicly listed Taiwanese carriers providing a glimpse of the bumper earnings that carriers are projected to earn in the 3rd quarter. Evergreen Marine, Yang Ming and Wan Hai’s July revenue figures increased by 132%, 122% and 144% respectively YoY, mirroring the average CCFI increase of 142% over the same period. Despite the recent spot freight rate correction with the SCFI dropping by 12.9%

Companies

Maersk Turned Around But Still Underperformed

Maersk's liner business turned around in 2Q 2024 after three quarters of negative EBIT but barely got much benefits from the soaring spot freight rates during the 2Q 2024. Average freight rates earned by Maersk up only 1% YoY and 7% QoQ against CCFI's 53% YoY and 12% QoQ. Maersk's liner EBITDA margin at 16.8%, much lower than CMA CGM's 23.9% and ONE's 28.9% in 2Q 2024. So despite of the Maersk's larger fleet, Maersk's EBITDA is 35% below that of CMA CGM's in 2Q 2024. All these three liners that

Companies

ONE reported earnings growth in 2Q 2024

ONE EBIT nearly doubled YoY and tripled QoQ in 2Q 2024 on reduction of unit costs despite sub-market freight rates hike achieved. ONE’s unit revenue (total revenue over total volume) was up only 1% YoY and 4% QoQ against CCFI’s 53% YoY and 12 % QoQ. ONE lifted FY2024 earning guidance from $1.0bn to $2.7bn, with earnings expected to nearly double QoQ to $1.5bn in 2Q FY2024 (Jul-Sep) before dropping in 2H FY2024 by 78% HoH.

Companies

CMA CGM reports lower earnings for 2Q 2024

CMA CGM’s 2Q 2024 earnings surprisingly dropped YoY with average freight rates dropping by 7% YoY and 1% QoQ despite the 53% YoY increase in the CCFI. CMA CGM’s higher contract rate exposure that were signed at substantially lower levels than current spot rates contributed to the disappointing earnings. CMA CGM’s liner revenue dropped 1% YoY in 2Q 2024, lagging behind all other carriers that have reported revenue growth so far, with OOCL’s revenue rising by 14% YoY while the 3 main Taiwan carri

Companies

OOIL 2Q 2024 top line underperformed on route mix

OOCL reported its 2Q operational update on 15 July. OOIL 2Q 2024 total revenue recorded 14% YoY and QoQ gains compared to the Taiwanese’s 47% YoY and 20% QoQ growth. Relative to the Taiwanese liners, OOIL has much higher mix in short haul Intra-Asia, Oceania and Transatlantic trades, which have not seen the same quantum of freight rates hike compared to the long-haul trades during 2Q 2024.

Companies

Earliest Liner 2Q 2024 Results Suggested Revenue Back to 4Q 2022 Level

Taiwanese liners reported their June revenue, which in aggregate were up 32% MoM and 78% YoY. On quarterly basis, these liners' top line were up 20% or $1b QoQ to over $6bn in aggregate. The last time these liners together earned over $6bn in revenue were back in 4Q 2022. The combined EBIT for these 3 liners were just $800mn in 1Q 2024. The $1bn QoQ jump in revenue, driven mainly by the spot freight rates uptick, may have doubled these liners' EBIT in our estimates.

Companies

Taiwanese Liners’ monthly revenue up 7% MoM

EMC, the Taiwan listed shipping arm of the Evergreen Group, released the week before its monthly revenue for May, which was up 1% MoM and 34% YoY. There was no dip in revenue despite of the spot freight rate correction between February and April. Last week, Yang Ming and Wan Hai reported stronger MoM increase in their monthly revenue in May than Evergreen. These monthly revenue levels in May were better than any single month in 2023 and comparable to the level at end of 2022 or 2020. Further up

Companies

ZIM 1Q 2024 results: Turned Around, Guided Strong 1H But Uncertain 2H 2024

Zim reported its first profitable quarter since 2022 with 1Q 2024 net profits reaching $90.2m and EBIT at $167m for an EBIT margin of 11%. Zim’s full year EBIT guidance was raised to between $0 to $400m from its previous projection of between -$300m to $300m although management cited continued market uncertainty in the second half for the wide range. Zim’s total liftings increased by 10% to reach 846,000 teu with Transpacific volumes rising by 27% while Asia-Med volumes dropped by 40%. Transp

Companies

Hapag-Lloyd 1Q 2024 Results

EBIT turned around in 1Q 2024 from 4Q 2023 losses on sequentially higher freight rates. Management lifted lower end of the EBIT guidance from negative $1bn to breakeven while keeping the upper end of the guidance unchanged at $1bn.

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