SM Line eyes quadrupled earnings this year, sailing smoothly for IPO in H2

[Photo provided by SM Line Co.]

SM Line Corp., the container carrier unit under South Korea’s mid-sized conglomerate Samra Midas (SM) Group, has already achieved more than 70 percent of last year’s earnings in the first two months thanks to the vibrant global commerce market recovery, boding well for its IPO plans.

SM Line disclosed Thursday that it posted 86.4 billion won ($75.98 million) in operating profit in the January-February period, which would be 72 percent of its best annual operating profit of 120.6 billion won in 2020.

SM Line projects over 400 billion won in operating profit this year.

The company attributed its solid performance to improved profitability thanks to the joint operation with 2M Alliance, enhanced market conditions in the shipping industry, and rebound in freight rates.

The brisk performance would spice up SM Line’s plan to go public in the latter half of this year.

The shipper plans to use the IPO proceeds to invest in vessel and container equipment to bolster servicing in Americas and Asia. In addition to the partnership with 2M Alliance, it also plans to join K-Alliance, an alliance of Asian ocean carriers to broadening its sea network.

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