HMM says it will be back in profit in Q3 with THE Alliance membership
HYUNDAI Merchant Marine (HMM) CEO Bae Jae-hoon told reporters at a press conference in Seoul that the company is expected to return to profit from the third quarter, thanks to its membership in THE Alliance and deployment of more efficient mega box ships
HYUNDAI Merchant Marine (HMM) CEO Bae Jae-hoon told reporters at a press conference in Seoul that the company is expected to return to profit from the third quarter, thanks to its membership in THE Alliance and deployment of more efficient mega box ships.
'The third quarter is traditionally a bumper season for the shipping industry,' the CEO said. 'As long as there are no big changes in market conditions, we expect a turnaround in the third quarter.'
The shipping line has been in the red since the second quarter of 2015 despite aggressive self-rescue plans and huge financial support from the government. According to a regulatory filing as of July-September, its debt ratio is 858 per cent, with a total debt of KRW6.13 trillion (US$5.26 billion) on assets of KRW714.1 billion, reported Seoul's Maekyung Media Group.
Mr Bae said the company is also aiming to ramp up 2020 sales by 25 per cent from the previous year. Although, this year's sales are likely to be similar to the previous year`s KRW5.22 trillion.
HMM will join THE Alliance in April. 'Unlike in the 2M Alliance, we would have a more equal say in THE Alliance so that we can play a more proactive role,' Mr Bae was quoted as saying.
From the second quarter, it will also start operating 12 containerships of 24,000 TEU on routes linking Asia to Europe. These ships consume half the fuel of their 10-year-older peers, which would help with profitability, the company said. The vessels were state-funded by Korea Development Bank and Korea Ocean Business Corp.
HMM will also undergo a name change. Mr Bae said the company would decide on a new name in February and seek approval from the board and shareholders.