Wan Hai Lines (2615) Q2 2025 earnings summary

Executive summary

• Operating revenue for 1H25 increased by 9.4% year-over-year to NT$71,943 million, with gross profit up 31.4% and operating income up 36.7%.

• Net profit attributable to owners dropped 39.4% year-over-year, mainly due to unrealized foreign exchange losses from NTD appreciation and asset impairments.

• Basic and diluted EPS for the six months were NT$3.50 and NT$3.49, respectively, down from NT$5.77 in the prior year.

• Gross margin improved to 29% from 24% year-over-year, but net margin declined due to higher non-operating losses.

• Intra Asia services accounted for 55% of lifting volume, with USA and South America contributing 20% and Middle East/India 24%.

Financial highlights

• Operating revenue: NT$71,943 million in 1H25, up 9.4% year-over-year.

• Gross profit: NT$20,797 million, up 31.4% year-over-year.

• Operating income: NT$17,909 million, up 36.7% year-over-year.

• Net profit: NT$9,824.2 million, down 39.4% year-over-year due to FX losses and asset impairments.

• EPS: NT$3.50 in 1H25, down from NT$5.77 in 1H24.

Outlook and guidance

• Fleet expansion continues with new energy-efficient and methanol dual-fuel vessels scheduled for delivery through 2030.

• Sustainability targets include a 50% reduction in carbon intensity by 2030 and net-zero GHG emissions by 2050; 2024 carbon intensity already reduced by 54% from 2008 baseline.

• Management expects adoption of new IFRS standards in 2026 and 2027 to have limited impact on financials.