Evergreen boosts 24% revenue increase but remains prudent on 2019 overall result
Evergreen Marine Corporation (Taiwan) Ltd has revealed a post-tax loss of NT$377,054,000 for the first half of 2002, largely as a result of the depressed state of the global container shipping market. However, the company’s president, Arnold Wang, says that things are looking much better for the second half of the year:
“Recent freight rate increases are holding and, as is normal in the second half of the year, cargo volumes are increasing. We still expect to show a modest profit for the full year.
Evergreen halved non-operating expenses thanks to reduction of investment losses
Sales revenues fell from NT$8,849,773,000 in the first half of 2001 to NT$6,866,400,000 for the same period of this year. This is attributable to the reducing size of the EMC (Taiwan) owned fleet and the weakness of the South America trades which provide the principal employment for the EMC (Taiwan) fleet.
Non-operating income fell from NT$1,836,444,000 to NT$656,288,000 but the company explains that in 2001, non-operating income had been inflated by profits from ship sales and currency exchange earnings. Non-operating expenses were virtually halved, falling from NT$1,412,981,000 to NT$758,969,000 thanks mainly to a sharp reduction in investment losses as affiliated companies such as EVA Air in which EMC has a 25% shareholding iD rallied after a poor 2001.
Evergreen sets positive factors for remaining of the year
Looking ahead to the second half of 2002, Mr Wang identified a number of positive factors:
– The sale of two 3600TEU GX-type ships in August, Ever Gallant and Ever Group;
– Improved profit forecasts for companies such as EVA Air in which EMC (Taiwan) has major shareholdings;
– Improving freight rates.
As at 30 June 2002, EMC (Taiwan) owned 15 ships and operated another 26 that are owned by a Panamanian subsidiary, Greencompass Marine SA. While the former group of 15 ships contribute directly to the company’s sales revenue, the profits generated by the Greencompass fleet appear in the company’s accounts as part of the non-operating income.