Taiwan-based Yang Ming Marine Transport Corporation reported a bigger net loss in the first quarter of 2018 despite higher revenues and stronger volumes logged during the period.
In a statement, the ocean shipping company disclosed consolidated revenues for Q1 of NTD31.03 billion (US$1.07 billion), up 2.58% compared to NTD30.25 billion in revenue the previous year. Volumes in 2018 Q1 also increased to 1.22 million TEUs, up 9% year-over-year.
The company’s net loss after tax was NTD1.95 billion compared to a net loss after tax of NTD901.45 million for last year’s first quarter.
The company stressed, however, that it continues to make progress in volume, revenue, and operational efficiency despite the earnings setback.
“Under an improving container shipping market, Yang Ming has returned to profitability last year. In spite of the typical first quarter slack season, the financial report has shown continued year-on-year growth in volume and revenue which was better than expected, and also demonstrates the progress of Yang Ming’s strategy and global efficiency enhancement,” said the company.
Looking ahead, Yang Ming takes a cautious outlook on the industry’s prospects.
“With the new containership capacity scheduled to be delivered in 2018, the record levels of capacity [are] expected to slightly exceed demand. While the International Monetary Fund (IMF) is suggesting that global economies as a group will continue to expand, Yang Ming remains conservative on the outlook of the 2018 container shipping industry.”
Citing the recent forecast from Alphaliner, the carrier said there are indications that, despite the oversupply situation in 2018, demand is expected to catch up to supply in 2019, possibly bringing an end to overcapacity.
“Meanwhile, Yang Ming will continue to strengthen its business strategies and optimize fleet deployment to deliver better service networks and sustainable competitiveness advantage to customers worldwide,” it said.
Photo: pete – Ym People at Keelung
