Thai feeder operator Regional Container Lines has bagged its highest-ever record profit.
Net profit jumped 37% to THB 24.6bn ($696.6m) in 2022.
The result was boosted by the retirement of five vessels, which were sold in 2022. Proceeds from those sales of THB 900m ($25m) have been included as an extra gain.
President Twinchock Tanthuwanit described 2022 as “a banner year” for the company but warned of several adverse factors affecting the container shipping market.
He noted that the improvement in results was mainly due to a 24% jump in freight rates over the year.
Freight rates remained at high levels last year, but had dropped to pre-Covid levels in the fourth quarter, he said.
Costs had also risen as a result of adverse market conditions, Tanthuwanit noted.
These include high bunker prices, inflation, high-interest rates, pending recession, disruption in supply chains and geopolitical conflicts.
But the company had been able to maintain the profits with strict cost-control practices, he said.
Downward trend
The sale of five vessels had also improved the profile of the Thai operator as owner and operator of a fleet of 42 vessels, ranging in size from between 388 teu and 11,714 teu.
“As the container shipping industry’s performance mainly depends on freight rate and total lifting, the company continues to carefully monitor and manage its business strategies to be in line with the downtrend in freight rate,” Tanthuwanit noted.
The company would continue to put efforts towards managing its services network along with fleet optimisation, he added.
Earnings per share for 2022 increased to THB 29.71 per share, up from THB 21.69 per share in 2021.
