HMM reported a strong performance in the third quarter of this year, nearing an operating profit of 1.4 trillion won. The significant increase in operating profit, nearly five times compared to the same period last year, was driven by improved profitability in the container transportation sector and expansion in the bulk business.
On November 12, HMM announced that its consolidated revenue for the third quarter reached 4.1271 trillion won, with an operating profit of 1.3947 trillion won. This marks a 52% increase in revenue and a 370% rise in operating profit compared to the same period last year. Net profit for the same period was 1.5352 trillion won, up 405%.
The operating profit for the third quarter is the highest since Q3 2024, when it was 1.4613 trillion won. HMM's operating profit margin stood at approximately 34%, significantly higher than major global shipping companies such as Maersk (20.6%), ONE (21.6%), and COSCO (28.7%).
For the first three quarters of this year, cumulative revenue reached 10.2478 trillion won, a 25% increase from the previous year. Cumulative operating profit rose by 76% to 2.2179 trillion won, while net profit increased by 52% to 2.3002 trillion won.
By business segment, the cumulative operating profit for the container sector in the third quarter was 1.6353 trillion won, a 55.3% increase from 1.0533 trillion won in the same period last year. Despite external uncertainties such as the Middle East conflict, typhoons in China, and droughts affecting the Panama Canal, HMM focused on expanding its transportation network based on a Hub & Spoke strategy and securing high-revenue cargo.
The bulk sector also showed remarkable growth, with cumulative operating profit in the third quarter reaching 378.4 billion won, a 418.5% increase from 73 billion won in the same period last year. The bulk sector's share of total operating profit rose from 6.4% last year to 18.8% this year.
This growth is attributed to a restructuring of the business model from short-term charters to long-term contracts, initiated in the second half of last year. Quarterly operating profit in the bulk sector increased from 45 billion won in Q3 last year to 156.3 billion won in Q2 this year, and 139 billion won in Q3.
HMM is also continuously expanding its bulk fleet. As of the end of Q3 this year, the bulk fleet consisted of 60 vessels, a 36% increase from 44 vessels at the end of Q1 last year. Including 22 vessels awaiting delivery, the total reaches 82. HMM aims to diversify its fleet types, including bulk carriers, tankers, car carriers, gas carriers, and multipurpose vessels, to reduce performance volatility due to fluctuations in container market conditions.
This year, HMM has invested a total of 6 trillion won in fleet expansion, logistics infrastructure, and securing future technologies. Since the appointment of President Choi Won-hyuk in March last year, cumulative investments have exceeded 12 trillion won.
Looking ahead, HMM plans to invest a total of 29 trillion won by 2030 to expand its fleet to 166 container ships (1.47 million TEU) and 110 bulk ships (13.52 million DWT), thereby enhancing its business competitiveness.
* This article has been translated by AI.
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