Companies/Financials

Total 98 Posts

Companies

ZIM: Agility To Be Tested

ZIM has slashed its 4Q 2022 EBIT earnings forecast to $440m from $740m, compared to $1,554m in 3Q 2022 due to falling freight rates and weaker liftings. Although ZIM has emphasized its commercial and operational agility, this will be tested over the next 2 years as it takes delivery of more than 50 newbuildings and committed vessel charters that will raise its operated capacity by some 70% (before charter redeliveries). Zim’s heavy reliance on chartered tonnage since its financial restructurin

Companies

ZIM 3Q earnings down 13% QoQ

ZIM reported before US market open on 16 Nov. Net profit was down 13% QoQ on sequentially lower freight rates, lower volume and higher costs particularly in chartering expenses. In the earnings call, the management mentioned that they have lower the signed freight rates in the existing contracts.

Companies

US destocking to continue with weak Walmart 3Q numbers

Walmart's 3Q 2022 sales performance showed declining general merchandise sales while inventory levels remain high, providing a cautious near term outlook for container volume. Sales increased 9% driven primarily by grocery items and partly by inflation but general merchandises were down a low single digit percentage, according to Walmart's announcement on 16 Nov 2022. Walmart's inventory level was up 8% QoQ and 13% YoY. The elevated inventory to sales ratio since 21Q3 suggests that de-stockin

Companies

MSC runs away on fleet size league table

MSC is not slowing down its aggressive capacity expansion program despite the worsening market outlook. It has taken delivery of 7 more second-hand acquisitions so far this month, bringing the total number of ships acquired in the resale market to 306 units since 2020 (including units that were it had previously chartered). MSC was also linked to a package deal concluded with Costamare for 7 ships of 8,500-11,000 teu for forward delivery in 2025 for 4-5 year periods. Costamare also confirmed fo

Companies

Wanhai profit drop 28% QoQ

Wanhai reported after Friday (11 Nov 2022) closed. Net profit dropped 42% YoY and 28% QoQ. Not much surprises since the top line has been reported few weeks ago and the QoQ quantum drop in pre tax earnings eg NTD12bn is similar to the top line QoQ drop. Liners with less contracted business ratio is still see greater earnings drop near term.

Companies

Hapag Lloyd 3Q higher sequentially

Hapag Lloyd reported 3Q results before Europe opens on 10 Nov 2022 with a set of strong earning results. Full quarter effect of new contracted rates and Transatlantic exposure pushed earnings higher QoQ. Management keeps FY guidance unchanged, suggesting 4Q EBIT to fall 17% QoQ.

Companies

TWN Liners October top line fell but fell less than CCFI

EMC, YMM and WHL reported October top line. In aggregate, which provide better read through for the industry, revenue in USD fell 15% MoM and 33% YoY, probably would be taken as positive surprises since the fall is less than CCFI. As additional context for this set of October figures, the Taiwanese liners' revenue fell more more than CCFI during September.

Companies

AD Ports acquires controlling stake in Global Feeder Shipping

AD Ports have agreed to buy an 80% stake in Dubai based Global Feeder Shipping (GFS) on 3 November 2022 for a total  consideration of $800m, implying a total valuation of $1 Bn for GFS. In the last 12 months, GFS recorded total revenues of $1,085m, EBITDA of $521m and Net Profit of $481m, with an EV/EBITDA multiple of 1.9x for the transaction. According to AD Ports, it assumed a correction of 60% in the freight rates over the coming years from the peak rates in 2022 before arriving at the agre

Companies

Maersk 3Q: BTE; Maintain Guidance; Cut Industry Demand Forecast

Maersk reported 3Q before market open today (2 Nov 2022). Earnings turned out better than expected (BTE) but guidance stayed unchanged, suggesting a bearish outlook. BTE 3Q Results: EBIT $9.48bn, up 5% QoQ and 62% YoY, beat Bloomberg consensus estimate of $8.63bn. The BTE earnings were due to higher contract freight rates. During the period, Maersk continued to experienced costs increase particularly in bunker and depreciation, which including chartering. Maersk's 3Q volume dropped 8% YoY and 3

Companies

ONE consortium seals Seaspan deal

Poseidon Acquisition Corp, an entity formed by ONE together with the 3 controlling shareholders of Atlas (Fairfax Financial Holdings, the Washington family and David Sokol, chairman of Atlas) have entered into a definitive agreement on 1 November 2022 to acquire Atlas in an all-cash transaction for an enterprise value of $10.9 Bn. Poseidon will acquire 32% of the outstanding common shares of Atlas not owned by the 3 controlling shareholders for $15.50 per share in cash, which represents a 34% p

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