Thai intra-Asia carrier Regional Container Lines (RCL) recorded a THB1.75 billion (US$58.28 million) net profit amid an unprecedented rate spike in 2020.
[s2If is_user_logged_in()]Freight income per TEU was up 11% year-on-year, resulting in overall income increasing by 4% to THB17.2 billion (US$574.32 million). This was despite RCL’s total cargo volumes dipping by 6% due to congestion in ports.
The result reversed a THB493 million (US$16.44 million) net loss in 2019. RCL had a net profit of THB1.26 billion (US$42.08 million) in Q4 2020 alone, overturning the net loss of THB169 million (U$5.64 million) in Q4 2019.
RCL’s directors will offer a dividend of THB0.5 (US$0.017) per share to its shareholders in view of the company’s improved results.
RCL managing director Sumate Tanthuwanit said, “The year 2020, especially the second half, was extremely good for the shipping industry, despite the (Covid-19) pandemic.”
Sumate noted that the well-documented container shortage resulted in Q4 2020 freight rates increasing by 22% from the previous quarter, to THB9,555 (US$319)/TEU.
He added that even as freight revenue soared and countries around the world began opening their economies from pandemic-related lockdowns, RCL continued to practice cost management. As a result, helped by lower bunker prices, RCL’s costs were cut by 8% in 2020, to THB15.5 billion (US$517.54 million).
Martina Li
Asia Correspondent
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