14-08-2018

Taiwan’s Yang Ming widens loss to US$129.1 million as sales rise 1.1pc

TAIWAN’s Yang Ming widened its year-on-year second quarter net loss to TWD3.8 billion (US$129.1 million) against last year’s quarterly loss of TWD445 million. This year’s quarterly revenues were TWD33.6 billion, up of 1.1 per cent.

For the first half of 2018, Yang Ming's net loss was TWD5.8 billion against a net loss of TWD1.34 billion for the corresponding period in 2017 with revenues rising to TWD 64.6 billion, up 1.8 per cent.

Container throughput was up 11.8 per cent in the second quarter to 1.3 million TEU while first half volume was up 10.3 per cent to 2.5 million TEU.

Yang Ming said that unexpected fuel price increases drove up operating costs, with the average fuel price for the first half of the year increasing 25 per cent from the corresponding 2017 period.

"Second-half performance is expected to improve due to stronger peak season demand and less new tonnage being introduced to the market. With these circumstances, ocean freight rates may rise as a result," Yang Ming said.

Looking ahead, Yang Ming has approved the construction of ten 2,800-TEUers, which will be deployed on the intra-Asia market. In addition, there are five 14,000-TEU chartered vessels scheduled for delivery beginning in the fourth quarter of this year, as well as 10 12,000-TEU chartered vessels that will be delivered in 2020 and 2021.

Yang Ming said its equity, strengthened by the injection of $343.5 million in capital and a $255 million secured convertible bond issued on May 25, together with its increased government-related ownership to 45 per cent, will bolster its access to financing channels in Taiwan.

Source: Schendet

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