HMM Reports Operating Profit of 136.7 Billion KRW in Q2... Returns to Profitability After 21 Quarters

New Shipping Alliance Membership, Deployment of World's Largest Container Ship, and Freight Rate Increase: The Three Key Factors

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] HMM has succeeded in turning a profit after 21 quarters.

On the 12th, HMM announced that its consolidated sales for the second quarter reached 2.6883 trillion KRW, with an operating profit of 136.7 billion KRW. Although sales decreased by 24.5 billion KRW compared to the previous year, operating profit increased by 355.2 billion KRW to 136.7 billion KRW, turning profitable. The net loss for the period was 37.5 billion KRW, which also showed significant improvement compared to the previous year's 379.2 billion KRW.

The company explained that both the container and bulk business divisions returned to operating profit due to cost structure improvements such as route rationalization and cargo cost reduction, as well as the effect of freight rate increases.

HMM stated, "Although container loading volume and sales slightly decreased due to the worsening of the novel coronavirus infection (COVID-19), we achieved a turnaround to profitability after 21 quarters thanks to joining the new shipping alliance THE Alliance starting in April and deploying the world's largest 24,000 TEU-class container ships."

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