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.