Hyundai Merchant Marine narrows loss 12pc to US$117 million
KOREA's Hyundai Merchant Marine's (HMM) first quarter operating loss has narrowed to KRW131 billion (US$117 million) from last year's KRW163 billion quarterly loss as this year's Q1 revenues of KRW1.3 trillion increased 12 per cent year on year.
The South Korean ocean carrier said its results improved because of increased sales and a reduction in operating costs that were offset by a 59.2 per cent increase in bunker costs.
HMM lifted 958,934 TEU in the first quarter, up 37 per cent year on year. It said shipments to the "American region" were up 41.4 per cent and volumes to Asia increased 62.4 per cent.
Said HMM chief executive Yoo Chang-keun: "Entering the third and fourth quarters of the year, we will see an improvement."
HMM said it expects to complete a previously announced sale and leaseback of 10 containerships with Korea Shipping and Maritime Transportation Co Ltd, an entity set up by the South Korean government to help the country's shipping industry.
The ships are valued at KRW150 trillion, roughly 2.5 per cent of HMM's assets.
HMM said in the filing that "to compensate for the differences between the market value and the book value of the ships, capital injection of KRW704.3 billion is expected by Korea Shipping and Maritime Transportation Co Ltd, consisting of KRW600 billion worth of perpetual convertible bond and a KRW104.3 billion paid-in capital increase."Sarawak shipping 2