The global container shipping industry still faces uncertainties ahead due to ongoing global inflationary pressures and geopolitical risks, Yang Ming Marine Transport Corp (陽明海運) said yesterday, as it announced a cash dividend of NT$20 per share this year, unchanged from last year.
“Since the fourth quarter of last year, consumers’ purchasing power has been diminished by the effects of inflation and high inventory levels,” which has slowed overall economic activity and caused headwinds for the shipping industry, Yang Ming said in a statement.
Yang Ming, Taiwan’s second-largest container shipper by fleet size, said that supply-demand imbalances also continue to weigh on the outlook for freight rates.
Photo: Ann Wang, REUTERS
“According to [maritime consultant] Alphaliner’s latest forecast, an oversupply in the container shipping market is expected in 2023, with an 8.2 percent growth in capacity and a 1.4 percent growth in throughput,” Yang Ming said.
On a positive note, there is a potential for improvement in economic activity, the shipper said, citing a forecast by the IMF in January of 2.9 percent growth for the global economy this year, up from its previous prediction of 2.7 percent growth.
“As China lifts [COVID-19] restrictions and the gradual reduction of inventory, it might stimulate overall economic activity. These factors are likely to create a relatively positive environment for the shipping industry in the second half of the year,” Yang Ming said.
With the International Maritime Organization’s Carbon Intensity Indicator taking effect this year, container shippers are expected to implement slow steaming, retrofit ships and retire older vessel to reduce carbon emissions, which could help balance the supply-demand dynamics, it said.
Yang Ming’s board of directors yesterday approved the company’s plan to distribute a cash dividend of NT$20 per share this year after the company posted consolidated revenue of NT$375.93 billion (US$12.2 billion) last year, setting a new record, with net profit of NT$180.6 billion, or earnings per share (EPS) of NT$51.71.
Revenue increased 12.39 percent from NT$334.48 billion in 2021, and net profit rose 9.28 percent from NT$165.27 billion the previous year, when EPS were NT$48.73.
The proposed dividend represents a payout ratio of 38.68 percent and a dividend yield of 29.85 percent after the company’s shares closed at NT$67 yesterday.
To sustain its profitability amid ongoing external uncertainties, Yang Ming said it aims to explore new business opportunities, optimize its cargo structure, enhance its space utilization and prioritize customer satisfaction.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in