Companies/Financials

Total 98 Posts

Companies

Liner revenue rolled over in Sep

OOIL and the Taiwanese liners' revenue reports came out after the market close on Friday (7 Oct). All four liners reported sequentially lower revenue in 3Q. Liners will start to report their 3Q earnings in the coming weeks. These revenue reports suggest 3Q earnings may have come off from this cycle peak in 2Q. Consensus in the capital market is expecting 3Q liner* earnings to be between 4% up and 18% down QoQ. OOIL's 3Q revenue dropped only 5% QoQ while Wanhai's 3Q revenue dropped 18% QoQ. Sequ

Companies

Maersk raises methanol fuel orderbook to 19 units

Maersk has added 6 dual-fuel ships of 17,000 teu at Hyundai H.I. on 4 October 2022 that are able to operate on methanol, bringing its total order for green methanol containership orders to 19 units in total. It follows the landmark order of the first 2,100 teu unit at Hyundai Mipo in July 2021 and 12 units of 16,000 teu made in 2 steps in August 2021 and January 2022 at Hyundai H.I.. The new series will take the same design of its earlier 16,000 teu series that feature a forward accommodation

Companies

Hapag-Lloyd acquires 10 terminals from SAAM

Hapag-Lloyd will pay approximately $1 Bn to acquire 100% of the shares of SAAM Ports and SAAM Logistics as well as real estate assets related to the logistics business of Chilean ports and towage company SAAM. SAAM expects to book a net profit of $400 m on the deal that was signed on 4 September 2022. The transaction includes the sale of SAAM’s ownership stake in ten port terminals across six countries in the Americas, bonded warehouses and integrated logistics operations in South America. Det

Companies

Saif Powertec to launch new Bangladesh container shipping line

Bangladeshi port operator Saif Powertec will enter the container shipping markets for the first time in November 2022. It has signed a 15 year charter agreement with AD Ports' Safeen Feeders for 3 containerships of 1,700-2,100 teu that would be deployed on services calling directly at Bangladesh. Safeen will invest $102m to acquire the ships, with the first ship scheduled to join in November. Saif Powertec operates the Chittagong Container Terminal (CCT) and New Mooring Container Terminal (NC

Companies

Liner OPEX Could Stay High Unrelated to Freight Rates

As the container liner sector is entering an earning downcycle, OPEX analysis should be back in focus for the stakeholders. While the average freight rates over 6-month has been tripled since 19H1, OPEX has also quietly moved up by 52%. Hence the 60% EBIT margin reported in 22H1. If the average freight rates fall by 60%, the industry will reach the break even level holding all else constant. Some of the OPEX items may not be correlated with the freight rates or at least not moving in synchroniz

Companies

WHL and YMM Aug Revenue Add Confirmation To Industry Wide Downcycle

WHL and YMM also reported their August revenue last week, after EMC. WHL's August revenue fell 20% YoY, 12% MoM and 40% from its peak in Jan 2022. YMM's August revenue also fell both YoY and MoM. If the same MoM pace continues for Sep, the three Taiwanese liners will likely report 9% M0M lower top line and hence 7% QoQ lower top line for for 3Q 2022. Liner industry reported about 58% EBIT margin and 50% net profit margin during 2Q 2022. So on the ballpark, every 1% drop in top line would mean

Companies

AD Ports completes IACC acquisition

AD Ports Group has completed its first international acquisition on 14 September 2022 with the purchase of a 70% stake in the Egyptain company International Associated Cargo Carrier (IACC) which fully owns Transmar International Shipping Company and Transcargo International (TCI). Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa while TCI is a terminal operator and stevedoring company, mainly operating out

Companies

EMC August Revenue down 10% MoM

Evergreen Marine Corp. (EMC), the Taiwan listed arm of the Evergreen Group has reported a 10% MoM drop (8.5% in NTD) in operating revenue in August. The point of focus is the sequential change, which is larger than the CCFI's 6% MoM drop. It is unusual for carriers to report sequential revenue drops in August, during what should have been the middle of the usual peak shipment season. The last time EMC reported a larger sequential drop in any month in 3Q was in September 2011. EMC is expected to

Companies

CMACGM 22Q2 results in line with larger liners

CMA CGM 22Q2 results out after Friday close without much surprises. The reports from the other liners have pretty much painted the picture of the liner industry financial performance during 22Q2, e.g. larger liners reporting sequential earnings growth while smaller liners reporting sequential earnings drop probably a result of contract mix. CMA CGM reported sequential growth in revenue yield (revenue generate by each capacity slot in a quarter), similar to that of Maersk and Hapag Lloyd. Hence

Companies

Ranking Liners By Dividend: Yang Ming and OOIL top

The best yard stick, in our view, measuring management performance is the financial return generate over time. And the most direct financial return for shareholders is the dividend pay-out relative to a company's market value. Liners have been swimming in cash on extraordinary earnings since 2021. Reasonably, they also distributed dividend generously. Between 2021 and July 2022 end, a total of $38bn* of dividend paid while another $14bn have been committed to be paid in 2022 by the 16 shipping

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