South Korean shipping giant Hyundai Merchant Marine (HMM) has managed to reduce its loss for the third quarter of 2019 despite a modest growth in revenues when compared to the same period a year before.
HMM said that total revenue in the third quarter rose by 1.5%, from KRW 1.42 trillion (USD 1.22 billion) in the third quarter of 2018 to KRW 1.45 trillion (USD 1.24 billion) in this year’s corresponding period.
However, thanks to cost-cutting efforts and improved freight rates, the company has reduced its operating loss from KRW 123.1 billion (USD 105 million) in the third quarter of 2018 to KRW 46.6 billion (USD 39.8 million) in the same quarter this year.
The company further highlighted that the bulk business turned an operating profit of KRW 26.6 billion (USD 22.7 million) on the back of strong freight rates and optimal utilization of five VLCCs delivered this year.
Looking ahead, HMM said an increase in volume is expected ahead of the early Chinese New Year in 2020, despite the fourth quarter being a traditional slack season for the container sector.
The company added that it was working on a smooth transition to the THE Alliance without service disruption, offering reliable services with diversification of service routes and an improved cost structure through tear down & redesign activities.