Yang Ming Q1 loss much smaller than in 2016

The troubled Taiwanese ocean carrier plans to raise more capital next month after reporting higher revenues and container volumes.    Yang Ming Marine Transport Corp. posted a net loss of 901 million New Taiwan Dollars (U.S. $29 million) in the first quarter of 2017, according to the company’s most recent financial statements.
   The troubled Taiwanese ocean carrier was still optimistic about the results, however, noting that the loss was “a marked reduction of 75.3 percent compared to the same period last year.”
   Consolidated revenues in the first quarter totaled NTD 30.2 billion (U.S. $963 million), up 11.6 percent from previous year. Container volumes in the first quarter grew 14 percent yer-over-year to 1.13 million TEUs.
   Wen-Jin Lee, president of Yang Ming (America) Corp., said in a statement he believes the forecast for Yang Ming in 2017 is bright, as evidenced by the company’s performance in the most recent quarters.
   A full financial recovery will take time and a long-term commitment on the part of the company, and cannot be achieved in a single quarter, but an analysis of Yang Ming’s results shows the recovery is already underway, said Lee.
   Yang Ming said since the third quarter of last year the company has improved its operating performance and introduced more cost control measures, such as abandoning loss-incurring shipping routes, cutting down on operations costs, and rationalizing agency businesses and organizations.
   “All these efforts have proved greatly effective,” the company said, noting that industry studies indicate container shipping capacity and demand are coming into better balance and the Shanghai Containerized Freight Index, which measures composite freight rates on east-west trades, has been rising.
   At a shareholder meeting in December 2016, Yang Ming said it planned a recapitalization plan to raise approximately NTD 10 billion (U.S. $330 million) in new capital through a number of private offerings scheduled through the end of 2017.
   In February, Yang Ming concluded the first round of issuance, acquiring U.S. $54 Million in investments from various public and private entities.
   The company said it expects to announce the details and identities of a second round of investors next month when it completes that offering and will continue with the remaining rounds of issuance to achieve its recapitalization goal by the end of the year.