In line with the trend observed among its counterparts, HMM, a major South Korean container carrier, reported a decline in its financial figures for the year 2023.
In particular, the company achieved an operating profit of KRW585 billion (US$440 million) with a margin of 7%, a net profit of KRW1,006 billion (US$750 million) with a margin of 12% and revenue of KRW 8,401 billion (US$6.3 billion) in 2023, translating to declines of 94%, 90% and 55% respectively.
“The financial structure has remained solid,” stated HMM noting that its debt-to-equity ratio slightly improved to 20% in 2023 from 25% in 2022.
“Overall, the slowdown in demand and the influx of new container ships led to the normalisation of the container shipping market, putting the freight rates in key trade lanes under downward pressure during 2023,” commented an HMM spokesperson, adding that “disruptions in the Red Sea region are still underway, and a severe drought in the Panama Canal restricted daily vessel transits. Both issues have led to widespread uncertainty and market volatility.”
In its announcement, HMM said it will take delivery of twelve 13,000 TEU vessels this year, reaching its fleet capacity of 1 million TEUs. The company noted that once delivery is completed, large container ships of more than 10,000 TEUs will account for 80% of HMM’s fleet, substantially improving cost structure and operational efficiency.
Regardless of the recent sale process, HMM said it makes efforts to enhance its business capability for the swift response to the volatile market environment and will continue to secure a solid foundation for future growth.
