Regional Container Lines PCL : Financial Results as at 31 December 2012

In a traditionally low season, RCL reported fourth quarter 2012 results, posting a net loss at THB 1,223 million, after provisions of loss in both vessel impairment of THB 750 million and onerous contract for the amount of THB 347 million. The company's loss was THB 392 million in 4Q2011. Continued over-capacity has contributed to the operating loss of THB 1,404 million in 4Q2012, before a gain on sales of fixed assets. After taking into consideration the gain from sales of assets in 4Q2012, the twelve months loss was THB 1,927 million as compared with the loss of THB 780 million in 2011.
Regional Container Lines Group's Shipper Owned Container (SOC) liftings in 4Q12 increased 4% year-on-year at 279,684 TEUs. For Carrier Owned Container (COC), the liftings declined 6% year-on-year at 272,156 TEUs. The total liftings for 4Q12 therefore decreased 2% year-on-year at 551,840 TEUs. On the full year basis ended December 31, SOC liftings remain steady at 1,119,228 TEUs, however COC liftings reduced by 9% at 1,114,414 TEUs, resulting in a decrease in total liftings of 4% at 2,233,642 TEUs.
As a result of the decline in liftings, total turnover for the fourth quarter before exchange difference, reversal of loss on impairment of building, gain on sale of assets and adjustment for unrealized loss on derivatives, decreased by 1% Y-O-Y at THB 3,213 million.
The cost of freight and operation in 4Q12 reduced by 0.1% at THB 3,213 million as compared to the same quarter the year before, mainly due to the decline in liftings.
In 4Q12 the group disposed off some old containers and a vessel, which translated to a disposal gain of THB 181 million as against a disposal gain of THB 46 million in 4Q11. In addition, the group recorded a gain on exchange of THB 9 million in 2012 versus a loss of THB 169 million last year.
Despite the improved capacity disciplines led by major global carriers/alliances, the industry remains in a significantly over supply situation, as global fleet delivery appears set to increase by 8.2% in 2013 from 6.4% in 2012.
Source: Regional Container Lines PCL