HMM Reports Q2 Operating Profit of 354.1 Billion Won, Up 52% Year-on-Year

First-Half Revenue Hits 6.12 Trillion Won, Operating Profit at 623.2 Billion Won

Profitability Improves on Second-Quarter Freight Rate Rebound

HMM significantly improved its profitability in the second quarter of this year, driven by a rebound in freight rates and fleet operation efficiency.

On August 13, HMM announced that its consolidated revenue for the second quarter of this year reached 3.402 trillion won, with an operating profit of 354.1 billion won. Compared to the same period last year, revenue increased by 30%, and operating profit rose by 52%. Net profit for the period was 411.4 billion won, marking a 13% decrease from the same period last year.

The company's cumulative revenue for the first half of the year was 6.1207 trillion won, up 12% from 5.4774 trillion won in the same period last year. However, operating profit was 623.2 billion won, down 26% from 847.1 billion won in the first half of last year, and net profit fell by 37% to 765 billion won.

Second-quarter results also improved compared to the first quarter. Revenue rose by 25%, and operating profit increased by 32%.

The Shanghai Containerized Freight Index (SCFI) averaged 1,957 points in the first half of the year, up 15% from the average of 1,701 points in the same period last year. Although there were revenue losses due to the Middle East war after March and increased cost pressures such as higher fuel expenses, performance improved as the peak season arrived earlier than usual from the end of May, leading to a rebound in freight rates.

In response to high oil prices caused by the Middle East war, HMM pursued fuel cost optimization. Additionally, the company focused on fleet operation efficiency through its 'Hub and Spoke' strategy and on securing new demand, particularly in Southeast Asia. As a result, HMM maintained an operating margin of 10.2% in the first half, ranking among the highest levels of profitability among global shipping companies.

HMM forecasted that uncertainties will continue in the second half of the year. This is due to persistent supply chain risks, including U.S. tariff policies, congestion at the Panama Canal and major ports, and the ongoing Middle East war.

Despite these market conditions, the company plans to continue investing to secure future competitiveness. From the second quarter of last year to the first half of this year—a period of 15 months—HMM invested approximately 10 trillion won. Investment focused on strengthening competitiveness will continue in the second half as well.

HMM particularly emphasized that current investments are not simply about expanding its fleet but represent a proactive approach based on mid-to-long-term market outlooks. The strategy is to secure ships when global ship prices are relatively low, thereby enhancing future profitability and establishing a foundation for sustainable growth, especially given the ongoing rise in ship prices worldwide.

Recently, HMM expanded the scale of investment in its 2030 mid-to-long-term strategy to approximately 29 trillion won, further strengthening its investment base in pursuit of becoming a global top-tier shipping company.

This content was produced with the assistance of AI translation services.