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Matson quarterly profit up 33pc to US$24 million as revenue rises 9.5pc
HONOLULU's Jones Act carrier Matson posted a 33 per cent year-on-year increase in second quarter net profit to US$24 million, drawn on revenues of $512.5 million, which increased 9.5 per cent.
"Matson achieved better than expected second quarter results, buoyed by stronger demand for our expedited China service, the timing of fuel surcharge collections, higher lift volumes at our SSAT terminal joint venture, and improved performance in Logistics," said Matson chairman and CEO Matt Cox.
First half net income stood at $31 million, down from $36.1 million in the corresponding period a year earlier. Consolidated revenue rose from $921.9 million in 2016 to $986.9 million this year.
Matson's ocean transportation revenue increased 3.5 per cent ($25.7 million) year on year during the first half. This increase was mainly due to higher fuel surcharge revenue, higher container volume in China, and higher average freight rates in China and Hawaii, partially offset by lower volume in Hawaii, Guam and Alaska, the company said.
During the first half, Hawaii container volumes (measured in FEU) declined 4.1 per cent year on year, primarily due to the absence of competitive volume gains in the prior year.
Alaska volumes decreased 2.6 per cent in the first half, attributable to the continued energy sector related economic contraction; China volumes surged 18.8 per cent due to stronger demand for the company's expedited service and additional sailings; and Guam volumes dropped 10.7 per cent due to competitive losses.
"Matson achieved better than expected second quarter results, buoyed by stronger demand for our expedited China service, the timing of fuel surcharge collections, higher lift volumes at our SSAT terminal joint venture, and improved performance in Logistics," said Matson chairman and CEO Matt Cox.
First half net income stood at $31 million, down from $36.1 million in the corresponding period a year earlier. Consolidated revenue rose from $921.9 million in 2016 to $986.9 million this year.
Matson's ocean transportation revenue increased 3.5 per cent ($25.7 million) year on year during the first half. This increase was mainly due to higher fuel surcharge revenue, higher container volume in China, and higher average freight rates in China and Hawaii, partially offset by lower volume in Hawaii, Guam and Alaska, the company said.
During the first half, Hawaii container volumes (measured in FEU) declined 4.1 per cent year on year, primarily due to the absence of competitive volume gains in the prior year.
Alaska volumes decreased 2.6 per cent in the first half, attributable to the continued energy sector related economic contraction; China volumes surged 18.8 per cent due to stronger demand for the company's expedited service and additional sailings; and Guam volumes dropped 10.7 per cent due to competitive losses.
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