Evergreen expects shipping volume to recover in the second half

Evergreen Marine Corporation chairman - Anchor Chang - said container output in the second half of this year is expected to recover to a level similar to the same period a year ago, as revenues hold up in face of massive decline in demand.

At the Taiwanese carrier's annual shareholder meeting on June 24, Chang announced that dividends would not be distributed because the Covid-19 pandemic had reduced supply chain, production and the needs of consumers.

Container volume of Evergreen in February to May decreased by 20% compared to the same period last year but Chang did not disclose production figures. Revenue in this period reached 55.12 billion TWD (1.87 billion USD), down from 60.27 billion TWD (1.94 billion USD), down 3.6% from the previous year.

In 2019, Evergreen revenue was 190.5 billion TWD (6.34 billion USD), while profit before tax was 778.9 million TWD (25.92 million USD), compared with revenue of 169.24 billion TWD (5.54 billion USD) and profit before tax of 1.2 billion TWD (39.27 million USD) in 2018.

"It is estimated that H2 volumes will be restored to the level of the same period last year, but it will be difficult to be better than last year" he said.

Despite this, the shareholders expressed disbelief in the earnings of TWD 0.02 per share.

"This decision (regarding dividends) was made to stabilise future earnings." Chang said.

He added that the Evergreen-affiliated airline - EVA Air - like all around the world, was also affected when international travel was stopped due to global travel restrictions.

"We have been relying on air cargoes to maintain revenue. We try to ensure a stable income every year, but it’s difficult to say how much it can be", Mr. Chang added that as some countries diminished. blockade restrictions in June, the volume of goods began to recover.

Various industry estimates suggest that container shipping capacity will increase by 2.9% this year, but cargo volume will decrease by 8.8%.

Phaata (Source Container-News)