Singapore-based Pacific International Lines (PIL) returned to profitability in 2017 due to an increase in shipping revenue, container sales and initiatives which improved operational efficiency.
The company reported a net profit of USD 119.5 million for the twelve-month period ended December 31, compared to a net loss of USD 251.4 million seen a year earlier.
The company’s turnover for the period surged by 32 percent reaching USD 4.04 billion, compared to USD 3.07 billion reported in 2016, mainly driven by an increase in shipping volume, average freight rates and container sales.
The group’s container shipping business posted increases in shipping volume and average freight rates of 12% and 9%, year-on-year, respectively. This resulted in a 21.3% growth in the shipping business’ turnover. PIL also implemented initiatives which helped to increase operational efficiencies, with shipping expenses increased by only 9.3% in FY 2017 despite the much larger growth in revenue.
PIL informed that it is “encouraged by the recovery” that led to strong financial results, and expects overall market conditions to continue to improve in 2018, driving shipping volume, freight rates and container sales.