Rising demand for new containers and higher selling prices have significantly boosted the first-half earnings of Singamas Container Holdings, Seatrade Asia online reports. The Hong Kong-listed company recorded first-half net profit of $111.8m compared to $13m in the corresponding period of last year.
Revenue also jumped to $1bn, more than doubled from $488.4m obtained in the comparable period last year.
“The improved performance was primarily the result of continuing positive demand for new containers, higher average selling prices, effective cost controls and further improved production efficiency,” Singamas said.
Container selling prices remained strong at an average of $2,760 for a 20-foot dry freight container in the first-half of 2011. This compares to the full-year average for 2010 of $2,403.
Singamas noted that one of the major changes over the past 12 months or so has been a considerable reduction in seasonality, and this change is expected to benefit the company.
“Far more orders were placed in what has traditionally been the low season for the group. This has occurred because the group's customers have recognised that, as container supply is limited and new containers cannot be obtained during the traditional peak season as easily as in the past, so they must alter their ordering patterns to guarantee a regular supply,” Singamas said.
Revenue also jumped to $1bn, more than doubled from $488.4m obtained in the comparable period last year.
“The improved performance was primarily the result of continuing positive demand for new containers, higher average selling prices, effective cost controls and further improved production efficiency,” Singamas said.
Container selling prices remained strong at an average of $2,760 for a 20-foot dry freight container in the first-half of 2011. This compares to the full-year average for 2010 of $2,403.
Singamas noted that one of the major changes over the past 12 months or so has been a considerable reduction in seasonality, and this change is expected to benefit the company.
“Far more orders were placed in what has traditionally been the low season for the group. This has occurred because the group's customers have recognised that, as container supply is limited and new containers cannot be obtained during the traditional peak season as easily as in the past, so they must alter their ordering patterns to guarantee a regular supply,” Singamas said.