HMM reported a net profit of 10.07 trillion won ($7.87 billion) in 2022, up 89 percent on year and beating analyst expectations thanks to high shipping prices in the first half of last year.

Analyst expectations compiled by FnGuide indicated the container shipper would log a net profit of 9.79 trillion won.

It reported a record high revenue of 18.59 trillion won, up 35 percent on year and surpassing expectations of 18.4 trillion won in revenue.

Operating profit rose 35 percent on year to 9.94 trillion won, also hitting a record high. The figure beat analyst expectations of a 9.89-trillion-won operating profit.

HMM explained that shipping fares on all routes recorded high levels following the Covid-19 pandemic and the congestion of the U.S. ports until the first half of last year, and the increased efficiency by procuring its own ships and improving freight costs and constitution from the introduction of super-large ships led to a strong performance.

The Shanghai Containerized Freight Index (SCFI), a benchmark index for container shipping rates, decreased to 1,129 points in December last year from an average of 5,067 points in January 2022.

“A slowdown in overall demand is inevitable due to weak consumer sentiment caused by the global economic recession, such as inflation, interest rate hikes, and energy crisis,” HMM said.

Source: Korea JoongAng Daily