RCL reports record profit for 2022

Regional Container Lines (RCL) credits strict cost control and the sale of five vessels for a record profit in 2022 despite freight rates falling to “normal pre-covid” levels by the fourth quarter.

Thai-listed RCL reported a net profit of THB24.6bn in 2022 up 37% over the previous year. Revenues were also up 37% year-on-year at THB53.2bn in 2022.

The line noted that for the year as a whole freight rates were up 24%, however, volumes grew by just 1.4%. Although the year average freight was up, rates had fallen from their highs in the second quarter of last year to “normal pre-covid” levels by the fourth quarter.

The container shipping market was also impacted by high bunker prices, inflation, high-interest rates, a looming recession and disruption in supply chains, as well as geopolitical conflicts.

Nevertheless, the Company has been able to maintain the profits with strict cost control practices as well as improved the fleet profile effectively by selling the five retired vessels in 2022, in which THB900 million has been included as an extra gain,” RCL said.

Looking ahead the company commented: “As the container shipping industry’s performance mainly depends on freight rate and total lifting, the company continues to carefully monitor and manage its business strategies to be in line with the downtrend in freight rate as well as continues to put efforts to manage its services network along with fleet optimisation.”

RCL owns a fleet of 42 container vessels with a total capacity of 87,450 teu.