Yang Ming Marine Transport Corporation (Yang Ming) says it held its 324th Board Meeting on 9 November 2017 to approve its 2017 third quarter financial report and its expansion plans in Southeast Asia and the Mediterranean.
The third quarter of 2017 was marked by consolidated revenues of NTD 35.78 billion (USD 1.18 billion), up 23.40% compared with NTD 28.99 billion (USD 958 million) in revenue for the same period in 2016. Compared with revenues in the previous quarter (NTD 33.23 billion (USD 1.1 billion)), Yang Ming’s 3rd quarter revenues climbed 7.68%. Benefiting from higher freight rates and a healthier supply and demand during the traditional peak season, Yang Ming’s 3rd quarter volumes also increased to 1.24 million TEUs, up 11.10% year over year.
Yang Ming’s recent results yielded a net profit of NTD 1.26 billion (USD 42 million) in the 3rd quarter and a net operating income of NTD 1.55 billion (USD 51.16 million). For the same period, the company’s earnings per share was NTD 0.7. Year-to-date, the net operating income for the first three quarters of 2017 was NTD 0.5 billion (USD 16.57 million), and the accumulated loss after tax for the same period was NTD 82 million (USD 2.7 million), a substantial reduction of 99% compared to the same period last year.
Yang Ming’s improved financial status was substantially driven by strategic actions and initiatives designed to control operating costs, and helped by the concerted efforts of its team members worldwide. Recent efforts to centralize management and optimize container flow have helped to reduce operating costs. Also, Yang Ming has been able to achieve volume and revenue growth through utilizing marginal contribution data as criteria for cargo booking and setting miscellaneous business policies.
These efforts have helped to reverse the losses of the previous quarters. With continued support from its major shareholders and recent capital contributions, Yang Ming’s financial status will continue to improve, making it possible for Yang Ming to adjust its fleet scale in order to expand its service network.
Taking advantage of THE Alliance’s wide-ranging service network, Yang Ming is prepared to expand its presence in the ASEAN countries. With Board approval, Yang Ming will work in conjunction with the Taiwan International Port Corporation on a joint investment project in Indonesia with the common goal to develop the shipping and logistics sectors for the benefit of Taiwan-based customers and Taiwanese industries.
Additionally and in view of dynamic growth seen in regions worldwide, the Board has approved the establishment of a Mediterranean Regional Operating Center so that the company can optimize efficiency and provide customers with an integrated line haul service network in the region.