Wan Hai Lines (2615) Q4 2023 earnings summary

Executive summary

• Revenue fell to NT$100.22bn in 2023 from NT$258.95bn in 2022; the year ended with a net loss of NT$5.78bn versus net income of NT$93.13bn.

• Results reflected a steep operating downturn and vessel-related impairment charges; cash and cash equivalents remained NT$119.64bn at year-end.

Financial highlights

• Revenue was NT$100.22bn, down from NT$258.95bn YoY; operating income was a loss of NT$6.30bn versus income of NT$117.92bn in 2022.

• Gross loss was NT$1.51bn, compared with gross profit of NT$126.43bn in 2022; operating costs were NT$101.73bn and operating expenses NT$6.59bn.

• Net loss was NT$5.78bn; loss attributable to owners was NT$5.80bn and basic and diluted EPS were both negative NT$2.07, versus NT$33.17 and NT$33.05 in 2022.

• Interest income rose to NT$5.99bn from NT$2.35bn; foreign-exchange gains were NT$239.7m versus NT$4.91bn, while finance costs increased to NT$1.86bn from NT$1.49bn.

• Adjusted for NT$2.60bn vessel-equipment impairment and NT$339.7m right-of-use vessel-asset impairment, reported results still included a material operating loss.

Segment performance

• One reportable segment, primarily shipping operations; 2023 revenue by geography was Asia NT$45.34bn, Middle East/India/Red Sea NT$21.11bn, and Americas/South America NT$33.77bn.

• Freight generated NT$98.73bn of 2023 revenue; terminal revenue was NT$878.0m, other services NT$601.2m, and rentals NT$7.0m.