Pressured by increased fuel costs and low freight rates, South Korean shipping company Hyundai Merchant Marine (HMM) continued to deliver net and operating losses in the third quarter.
The company’s net loss for the quarter ended September 30 stood at KRW 60.3 billion, marking an improvement from a net loss of KRW 173.7 billion reported in the previous quarter of 2017, but a turnaround compared to a net profit of KRW 297.1 billion seen in the third quarter in 2016.
HMM ended the quarter with an operating loss of KRW 29.5 billion, against an operating loss of KRW 230.3 billion reported in the same three months in 2016.
While it managed to shrink its losses in the three-month period, mainly due to cost-saving efforts, HMM said that its total revenue for the quarter ended September 30 reached KRW 1.29 trillion, representing a rise of over 20 percent compared to KRW 1.07 trillion seen a year earlier.
Container volumes for the period surged by 41 percent to 1.04 million TEU from around 743,500 TEU handled in the third quarter of 2016.
In October 2017, HMM informed that it was looking to raise KRW 693.6 billion by selling shares. At the time, the company said that it would use the proceeds from the sale to invest in new ships and terminals.
The move was made on the back of HMM’s investment in fleet modernization, as the company said that it would acquire two large container vessels from Hanjin Heavy Industries and Construction based in the Philippines.
Furthermore, HMM earlier decided to build five 300,000 dwt very large crude carriers (VLCC) at Daewoo Shipbuilding & Marine Engineering (DSME), with an option for five more. The investment is worth USD 418.9 million.
World Maritime News Staff