Yang Ming Reports Wider Net Losses
TAIWAN'S Yang Ming Marine posted deeper net losses of T$4.6bn ($144.9m) in the third quarter of 2016 compared with a T$4.2b net loss in the year ago period amid the protracted downturn for container shipping.
Total revenue for the quarter came to T$29.0bn versus T$31.9bn in the year ago quarter, while total operating expenses were roughly stable at T$1.45bn versus T$1.44bn in the 2015 quarter, MANA correspondent reported.
In light of the less than stellar financial results, the board of directors are looking to implement a restructuring plan to trim the losses and raise capital via a private share issue of 1bn shares.
Yang Ming plans to use the fresh capital to strengthen its finances as well as cut operational and financial risks.
Amid the global shipping slump Yang Ming is still on track to be formally part of The Alliance in 2017, which will help the shipping line improve utilisation rates, broaden its service offerings and reduce operations costs.
Since August this year, Yang Ming has also been looking to implement measures to evaluate the performance of shipping routes and optimise space utilisation at its terminals to trim expenses.
As part of cost control measures, the shipping line has also announced salary cuts with the chairman, general manager and deputy general manager taking the lead with 50% salary reductions respectively, while those with the position of associate director and above will take a 30% pay cut.