Matson doubles income to $381mn, outlook bullish
Rates have likely peaked for now, and we expect an orderly marketplace for the remainder of the year: CEO Matt Cox
NYSE-listed Matson reported more than doubling of net income at $381 million for the quarter ended June 30, 2022.
Consolidated revenue came in at $1.3 billion compared with $875 million for Q22021, an increase of 44 percent, according to a statement announcing the results.
"Matson performed well in the second quarter of 2022 with higher year-over-year operating income in both Ocean Transportation and Logistics," says Chairman and Chief Executive Officer Matt Cox. "Within Ocean Transportation, our China service continued to see significant demand for its expedited ocean services as volume for e-commerce, garments and other goods remained elevated. The increase in consolidated operating income year-over-year was driven by continued strength in the China service. Currently in the Transpacific trade lane, we are seeing solid demand for our China service as China's factory production continues to recover from the Covid-19-related supply chain challenges.
"However, in recent weeks we have seen a gradual decline in the Transpacific freight rate environment off the highs experienced earlier this year. This indicates that rates have likely peaked for now, and at this time, we expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity and earning a significant rate premium to the market because of our differentiated, fast ocean services."
The company's container volume in China increased 12 percent year-over-year to 48,700 FEUs during Q22022. "The increase was a result of four more eastbound voyages than the prior year."
Total ocean transportation revenue increased 53.6 percent to $1.05 billion while operating income zoomed 134 percent to $470 million.