HMM’s net loss for 2017 balloons to more than a billion dollars

HMM’s net loss for 2017 balloons to more than a billion dollars

South Korea’s leading line Hyundai Merchant Marine (HMM) issued its unaudited results for 2017 today with the red ink flowing in dramatic fashion. HMM, which came through a fierce restructuring in 2016, saw its annual net loss more than double to KRW1.208trn ($1.1bn).

Revenues grew 10% to KRW5.03trn, while it managed to put a cap on its debt ratio, which improved from 349% in 2016 to 298%.

The company claimed in a release: “Net loss was result of a KRW479.5 billion loss in book value of 10 vessels that were sold to Korea Shipping and Maritime Transportation in March 2017.”

Despite the massive losses, HMM, backed by state funds, is about to embark on a huge fleet expansion which could see its fleet double in size by 2022.

Splash reported yesterday HMM is close to signing for twelve 22,000 teu ships and eight 13,000 teu vessels.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Gerry Lopez
    February 14, 2018 at 5:32 am


    At the same time Hyundai announces they had a FY loss of US 1. 1 BN they are announcing they are planning to order as many as 22 vessels as large as 22,000 t. The Korean government must have a serious desire to be global players.