Hyundai Merchant Marine (HMM) has credited five new VLCCs for helping narrow its losses in 2019.

The South Korean shipowner reported on Thursday that its net loss for last year shrunk to KRW 592bn ($501m) as compared to a net loss of KRW 790bn in 2018.

Revenue in 2019 rose 5.6% year-on year to KRW 5,513.1bn while operating profit climbed 45.6% to KRW 304bn.

The company attributed its improved financial performance to both rationalising its service network and maximising utilisation of five new VLCCs.

HMM, which operates a fleet of 24 containerships, tankers, bulk carriers plus a single LNG carrier, has not turned a profit since 2015.

But the company projected an upbeat mood in a regulatory filing, saying that its profitability could improve this year as a result of joining up to THE Alliance and the deployment of twelve 24,000-TEU container ships.

These ultra-large container vessels (ULCVs) are set to be delivered by shipbuilders DSME and Samsung Heavy Industries at regular intervals throughout the year.

Delivery of the first ULCVs will start in April. This is around the time that HMM formally joins THE Alliance, a move that puts it in partnership with Ocean Network Express, Hapag-Lloyd and Yang Ming Line.

The new ships will be deployed on THE Alliance’s Asia to Northern Europe mainline services.

A further eight 15,300-teu containerships will be delivered from Hyundai Heavy Industries in 2021.

HMM added that it would continue to secure global competitiveness this year through enhancing operational efficiency, strengthening cost-saving efforts, and establishing customer-oriented solutions.

While HMM expressed an overall positive outlook for itself during 2020, it cautioned that it could be impacted by uncertainties stemming from the outbreak of the COVID-19 coronavirus, rising concerns over a global economic downturn, and the US-China trade conflict, which are weakening the prospects for rises in trade volumes.