HMM Reports Operating Profit of 980 Billion KRW Last Year... First Annual Surplus in 10 Years

[Asia Economy Reporter Dongwoo Lee] Despite the impact of COVID-19, HMM achieved its first annual profit in 10 years.

On the 9th, HMM announced that it recorded sales of 6.4133 trillion KRW and an operating profit of 980.8 billion KRW last year. Sales increased by 16% compared to the previous year, and operating profit turned positive from a loss of 299.7 billion KRW during the same period. Net profit for the period was 124 billion KRW.

This is the first time in 10 years that HMM has recorded an annual profit since posting an operating profit of 601.7 billion KRW in 2010. Including the Hyundai Merchant Marine era, this is the highest operating profit ever recorded.

HMM analyzed that although container loading volume decreased by about 9% compared to the previous year due to the prolonged COVID-19 pandemic, the market conditions greatly improved as freight rates on Asia-Americas routes rose along with increases on Europe and other routes.

In particular, although the fourth quarter is a seasonal low for the container sector, the increase in cargo volume on Asia-Americas routes, the year-end season, Black Friday, and push shipments in preparation for the 2021 Lunar New Year led to a significant rise in the Shanghai Containerized Freight Index (SCFI) from an average of 1,209 points in the third quarter to an average of 1,975 points in the fourth quarter.

Continuous cost reduction efforts and active support from government agencies helped secure 12 of the world’s largest 24,000 TEU-class container ships on schedule and maintain full loads for 31 consecutive voyages, contributing to improved performance. Joining as a full member of ‘THE Alliance,’ one of the world’s three major shipping alliances, was also a key factor.

Delivery of Eight 16,000 TEU-Class Container Ships in First Half of This Year... Positive Signs for Cost Structure Improvement

HMM expects that although uncertainties in the global trade environment remain due to the resurgence of COVID-19 and US-China tensions in the first half of this year, the delivery of eight ultra-large 16,000 TEU-class container ships being built at Hyundai Heavy Industries will be completed in the first half, significantly improving the cost structure.

Accordingly, the company plans to focus on securing additional stable cargo, strengthening internal capabilities, and improving profitability through business structure reform.

Furthermore, HMM stated it will continuously strive to secure high-quality shippers, enhance operational efficiency, and refine cost reduction measures to achieve competitiveness at the level of global shipping companies.

HMM said, "This performance improvement was made possible thanks to the active support of the public, government agencies, and creditors," and added, "We will continue to fulfill our responsibilities and roles as Korea’s representative national shipping company."

This content was produced with the assistance of AI translation services.