HMM, Korea's top shipper, sees earnings jump

HMM, Korea's leading shipper, reported a third quarter net profit increase of over 18% due to rising shipping rates related to geopolitical tensions, reaching 1.74 trillion won, up from last year's 95.4 billion won.

HMM container vessel [YONHAP]

HMM, Korea's top container shipper, said Wednesday its third quarter net income had climbed more than 18 percent from a year earlier on increased shipping rates amid geopolitical tensions across various regions.

Net profit for the July-September period totaled 1.74 trillion won ($1.24 billion) on a consolidated basis, up from the 95.4 billion won recorded during the same period of last year, the company said in a regulatory filing.

Operating profit soared to 1.46 trillion won from 75.8 billion won last year, while sales jumped 67 percent to 3.55 trillion won.

Operating profit was 31 percent higher than the average market estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

HMM attributed the stellar performance to a significant rise in shipping rates driven by geopolitical risks, including the Red Sea crisis that began in December 2023.

The Shanghai Containerized Freight Index, which reflects freight rates on major sea routes, saw a dramatic increase, averaging 3,082 points in the third quarter compared with an average of 986 points in the same period last year.

The company also cited the opening of a new shipping route connecting Asia and Mexico and the expansion of high-margin cargo services for its improved performance.

Yonhap