Evergreen Marine Corporation (Taiwan) (2603) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$276,714,825 thousand, down from NT$627,283,761 thousand in 2022; operating profit was NT$34,750,086 thousand and profit for the year was NT$39,975,701 thousand.

• Results included a NT$4,963,982 thousand bargain-purchase gain and NT$6,524,648 thousand gain on investment disposals; profit attributable to owners was NT$35,337,051 thousand.

• Audit opinion was unqualified; freight revenue accuracy and cut-off, plus purchase price allocation for the Singapore acquisition, were key audit matters.

Financial highlights

• Gross profit was NT$49,930,143 thousand versus NT$398,450,140 thousand in 2022; operating costs were NT$226,805,671 thousand versus NT$228,841,382 thousand.

• Profit before tax was NT$64,171,957 thousand versus NT$399,424,478 thousand; income tax expense was NT$24,196,256 thousand versus NT$53,251,513 thousand.

• Basic EPS was NT$16.70 and diluted EPS NT$16.42, compared with NT$87.07 and NT$86.22, respectively, in 2022.

• Operating cash flow was a use of NT$14,956,416 thousand versus inflow of NT$422,429,577 thousand; year-end cash and equivalents were NT$170,229,777 thousand versus NT$392,346,479 thousand.

Outlook and guidance

• On March 14, 2024, the Board proposed a NT$10 per-share cash dividend totaling NT$21,439,152 thousand; shareholder approval remained pending at that date.

• February 2024 acquisition of Italia Marittima for approximately NT$13,614,118 thousand was intended to strengthen European operations and expand business scope; control was obtained February 7.

• Pending shipbuilding contracts totaled USD 8,251,021 thousand, with USD 6,437,534 thousand unpaid at year-end; loading and unloading equipment contracts totaled USD 451,595 thousand, with USD 187,340 thousand unpaid.