Companies/Financials

Total 184 Posts

Companies

CMA CGM 2023 2Q Earnings Continued to Fall But At Slower Pace QoQ

CMA CGM recorded a 34% QoQ and 83% YoY decline in net profits to $1.3 Bn in the second quarter of 2023 on weaker freight rates despite improved liftings that saw sequential volume increases that confirmed the trend shown in our high frequency data on weekly capacity and utilization. But CMA CGM recorded a larger QoQ sequential drop in its average revenue per teu compared to the CCFI due to contract mix and Trans-Atlantic exposure relative to CCFI. Trans-Atlantic head haul freight rates have fall

Companies

Matson 2Q Earnings Nearly Tripled QoQ

Matson provided preliminary 23Q2 results after Thursday close. Matson's ocean transportation activities will be between $78-83mn, which is nearly 3 times of the 23Q1 results but still down 80% YoY. The YoY drop is expected by the market but the sequential rebound in earnings may have come as a positive surprise to the analysts in the capital market. Matson 's operation is highly concentrated on US domestic routes in the Pacific Ocean and FE-WCNA while CCFI suggested China-WCNA freight rates ha

Companies

Taiwanese Liner’s Revenue Stayed Flat MoM in June

EMC, the listed shipping arm of the Evergreen Group, reported June revenue on 7 July where its revenue (in USD) dropped 4% MoM. In contrast, Yang Ming’s June revenue rebounded from its May low while Wan Hai’s June revenue was flat MoM. Overall, the 3 main Taiwanese carriers’ 2Q revenue fell 3% QoQ and 66% YoY. EMC was only able to avoid a decline in revenue due to the consolidation of the Evergreen Group’s non listed entities held outside of EMC (see Week 26 Market Pulse).

Companies

OOIL top line down but still suggest 2H20 level earnings for 1H

OOIL reported 2023 Q1 top line breakdown overnight (5 July) where its revenue dropped 9% QoQ and 63% YoY. More importantly, overall average freight rates for OOIL fell 15% QoQ and 63% YoY, comparing to CCFI's 14% QoQ and 70% YoY drop. And all four routes registered decline in average freight rates both QoQ and YoY where Transatlantic route suffered bigger sequential fall. OOIL has earned $530mn in EBIT during 1Q23 as per our computation from COSCO's disclosure. The sequential drop in average fr

Companies

COSCO earnings up QoQ likely on provisions unwinding

COSCO provided earnings alert after market close on 4 July where COSCO expects its EBIT and profit attributable to shareholders for 1H23 to be Rmb24.5bn and Rmb16.6bn respectively. Since COSCO's EBIT and profit attributable to shareholders for 1Q23 were Rmb10.7bn and Rmb7.1b respectively, this COSCO's earning alert implies 2Q23 earnings to be higher QoQ. The sequential growth in earnings as reported by COSCO is exceptional and could not be used as read-through to the other liners earnings to be

Companies

CMA CGM drops Containerships brand

CMA CGM will drop the Containerships brand from 1 July 2023, with all of the Containerships services coming under the unified CMA CGM brand. Containerships was founded in 1966 with operations based in Helsinki in Finland. CMA CGM had acquired Containerships from Finnish company Container Finance Ltd Oy on 31 October 2018, and retained the brand for its intra-European services. The acquisition was part of CMA CGM's strategy to densify its European regional network that began in 2002 with the acq

Companies

Evergreen Consolidating Container Shipping Businesses into ListCo

Evergreen Marine Corp. (‘EMC’), the Taiwan listed arm of the Evergreen Group, has announced the acquisition of the privately owned Evergreen Marine (Singapore) (’EMS’) for $780m on 19 June 2023, in a landmark deal that will pave the way for the eventual consolidation of the Evergreen Group’s container shipping assets into EMC. The acquisition is part of the Chang family’s moves to dissolve the Evergreen Group as the 4 sons of the late YF Chang battle for control of the group’s assets. The publi

Companies

Taiwanese Liners' Revenue Rose 2% MoM in May

The three Taiwanese liners' revenue (in USD) in May rose 2% MoM but fell 65% to $1,388mn in aggregate, which is comparable to the levels in August and September in 2020.  The three Taiwanese liners in aggregate delivered $581mn operating profit in 3Q 2020 on $384mn fuel expenses and $321/ton average fuel price. The latest fuel expenses in 1Q 2023 was about $700mn on $631/ton average fuel price.

Financials

Main carriers liftings drop for 7th consecutive quarter

Container liftings for main carriers fell 6.8% YoY in 1Q 2023, accelerating from the 6.6% YoY fall in 4Q. All  9 of the main carriers recorded volume reductions, with Zim and Maersk recording the largest drops. The aggregate liftings of the 9 carriers in 1Q 2023 were even lower than the 2Q 2020 level during the first COVID wave. Despite the of the continuous improvement of the vessel turnaround time on the easing of port congestion, liner’s volume yield (liftings per slot) has continued to fall

Companies

ZIM reported losses for 1Q

Zim reported losses for 1Q 2023 before market open today (22 May). Both net profit and operating profit level were negative. While the accounting operating cashflow is positive, the depreciation expenses, which are added back for the operating cashflow since 2019, were mostly lease expenses and hence are cash items. Management maintains full year guidance which for EBIT is $100-500m, against $14m LBIT in 1Q. Zim is the second major liner, after Wan Hai, to have reported losses in 1Q 2023. Bo

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