Thailand’s Regional Container Lines (RCL) has shrugged off a huge drop in profits by making a brace of container feeder acquisitions.
The Bangkok-listed company is spending a total of $47.3m to purchase a 1,930-teu newbuild and a 1,700-teu secondhand sub-panamax.
That is despite a 90% drop in net profits in the first quarter of the year.
The company is paying $27.3m for the larger boxship, which is tentatively scheduled to be delivered this quarter.
Several vessels of this design are under construction at Guangzhou Wenchong in China for imminent delivery.
RCL is also investing a further $20m for the 1,707-teu vessel.
This fits the description of the 1,707-teu Guangzhou Trader (built 2016), which was reported sold recently by UK-based Lomar Shipping.
The two vessels are expected to be incorporated into the carrier fleet in the second quarter.
President Twinchok Tanthuwanit said the acquisitions would enhance fleet efficiency and align with the company’s strategic objectives.
RCL is also selling an older vessel for $4.9m to be delivered this quarter. This is understood to be the 1,324-teu Itha Bhum (built 1996) which was reported sold to Chinese buyers.
Profits plummet
RCL is buying and selling ships after reporting a drop in profits to THB 911m ($26.2m) in the first quarter.
That is massively down on the THB 8.2bn ($239m) in the same period in 2022.
Revenues halved to THB 7bn in the quarter, down from THB 14.7bn in the same period last year.
RCL attributed the drop to lower demand with freight liftings down 11% year-on-year. The company also cited lower freight rates of $394 per teu in the quarter, down from $773 per teu in the same period last year.
RCL operates a fleet of 34 vessels, ranging in size from between 388 teu and 6,350 teu. It owns and charters out a brace of larger vessels to Israeli operator Zim, including the 11,850-teu Zim Bangkok (built 2023).
Currently, the company has shipbuilding contracts worth $621m for seven container vessels. These comprise four 7,000-teu and two 11,000-teu vessels.
