Seacon Shipping Group issued a positive profit forecast on March 3, projecting that the profit attributable to shareholders for the year ending December 31, 2024, will increase significantly by 200% to 220% compared to the same period in 2023. This impressive performance is largely attributed to multiple favorable factors including the recovery in global maritime trade volumes, rising freight rates, and the optimization of the fleet structure.
The announcement indicates that the global demand for maritime trade rebounded in 2024, with the Baltic Dry Index (BDI) annual average rising by 27.5% year-on-year, driving Seacon Shipping to achieve revenue growth through higher freight rates. At the same time, the company has further enhanced its profitability by strengthening management capabilities and cost control.
Additionally, in response to the global trend towards environmental sustainability and ESG requirements in the shipping industry, Seacon Shipping accelerated the optimization of its fleet structure in 2024, selling a batch of high-energy-consuming vessels and simultaneously advancing fleet renewal. This initiative not only reduced operational costs but also brought in approximately $46 million in asset sales revenue. After deducting this revenue and financial asset impairment losses, the company's earnings before interest and taxes (EBIT) are still expected to increase by 80% to 100% year-on-year, reflecting the continued improvement in its core business.
Seacon Shipping emphasized that the above data is based on a preliminary unaudited assessment, and the final performance will be subject to the annual report released by the end of March 2025. The company reminds investors to be aware of the risks associated with fluctuations in the shipping market and changes in industry policies and to make prudent decisions.
The rebound in global demand for bulk commodity trade in 2024, coupled with the replacement cycle for environmentally friendly vessels, has provided structural opportunities for dry bulk shipping companies. By proactively adjusting its fleet structure, Seacon Shipping may secure a more advantageous position in future competition.
Reposted from XindeMarine News
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