Pacific International Lines' FY2024 net profit quadruples to US$1.3 billion
This was attributed to a significant growth in its operating revenue as well as effective cost management.
Earnings before interest, taxes, depreciation and amortisation jumped to US$1.7 billion, from US$566.2 million.
Meanwhile, revenue grew 49 per cent year on year to US$4.3 billion.
This was led by its container shipping business, which saw revenue increase US$1.3 billion to US$3.8 billion on the back of stronger freight rates and high asset utilisations. A volume growth of 9.6 per cent in a highly disrupted market environment also helped to boost revenue.
For its container manufacturing business, revenue rose US$163.4 million to US$541.1 million. Gains were primarily driven by a surge in demand for dry freight containers due to disruptions from the Red Sea crisis.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Restocking activities in the US prior to the country's 2024 presidential election and the delivery of new container vessels to shipping lines during the year also increased demand for containers.
PIL reported a healthy cash balance of US$2.3 billion as at Dec 31, 2024.
To support its goal of operating a more modern, fuel-efficient and environmentally sustainable fleet, the company said it has ordered 18 new liquefied natural gas dual-fuel vessels, of which six have been delivered. These are in addition to PIL's current fleet of 89 owned vessels and 12 chartered-in vessels.
Lars Kastrup, CEO of PIL, said: 'The additional capacity brought on by newbuild vessels coming on stream in 2025 is expected to outpace the market demand for goods, but continued port congestions may absorb some of the capacity growth.'
With the year ahead expected to be filled with uncertainty and heightened challenges, Kastrup said that developments in the volatile market conditions will be monitored closely, and PIL will remain flexible to adapt to changes.
'Our strong cash position is bolstering our financial stability and resilience, and enabling us to continue to seek business growth,' he added.
The company will continue to double down on strategies and initiatives which have worked well for them.
This includes the launch of the PIL Centre for Maritime Efficiency and a memorandum of understanding (MOU) with the Centre of Excellence in Maritime Safety. The first was created to improve the energy efficiency of its ships and fleet, while the MOU enhances the competency of seafarers in safe navigation through technical and soft-skills training.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
International Business Times
an hour ago
- International Business Times
What is B30A? Nvidia Prepares New, More Powerful Blackwell-Based AI Chip for China
US-based semiconductor giant Nvidia is developing a new artificial intelligence chip for the Chinese market, sources familiar with the matter revealed. The processor, known internally as the B30A, will be based on Nvidia's latest Blackwell architecture and is expected to be more powerful than the H20 chip currently approved for sale in China. Nvidia X The move comes after U.S. President Donald Trump signaled last week that Washington may allow more advanced chips to be exported to China. However, approval remains uncertain as U.S. lawmakers continue to express concerns about providing Beijing with access to high-performance AI technology. The B30A will reportedly use a single-die design, offering roughly half the computing power of Nvidia's flagship B300, which uses a dual-die configuration. Despite the scaled-down performance, the chip will feature high-bandwidth memory and Nvidia's NVLink interconnect, similar to the H20 but built on newer technology. Although the final specifications are not yet confirmed, Nvidia aims to deliver samples of the chip to Chinese clients for testing as early as next month. In a statement, the company said it regularly evaluates new products to remain competitive "to the extent governments allow," emphasizing that all offerings comply fully with regulatory approvals. China accounted for about 13% of Nvidia's revenue last year, making it a critical market despite heavy restrictions. In July, the U.S. allowed Nvidia to resume sales of the H20, which had been halted earlier this year. Trump later suggested that future Nvidia chips for China could come with "30% to 50% off" in computing power compared to flagship models, calling the H20 "obsolete." The question of how much AI hardware China should access remains one of the most sensitive issues in U.S.-China trade relations. Nvidia has argued that continued engagement with Chinese firms is necessary to prevent them from switching entirely to local rivals like Huawei, which is rapidly improving its chip capabilities. Chinese state media have recently raised security concerns about Nvidia's chips, warning local companies about potential risks. Nvidia has denied those claims, saying its hardware contains no hidden vulnerabilities. Alongside the B30A, Nvidia is also preparing another China-specific chip, the RTX6000D, designed mainly for AI inference tasks. This processor, also based on Blackwell architecture, will have reduced specifications to comply with U.S. export thresholds. Small batches are expected to reach Chinese clients by September.
CNA
an hour ago
- CNA
US hikes steel, aluminum tariffs on imported wind turbines, cranes, railcars
WASHINGTON :The U.S. Commerce Department on Tuesday said it is hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, bulldozers and other heavy equipment, along with railcars, furniture and hundreds of other products. The department said 407 product categories are being added to the list of 'derivative' steel and aluminum products covered by sectoral tariffs, with a 50 per cent tariff on any steel and aluminum content of these products. The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles to the new tariffs. A group of foreign automakers had urged the department not to add the parts saying the U.S. does not have the domestic capacity to handle current demand. The new tariffs take effect immediately and also cover compressors and pumps. "Today's action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries," said Under Secretary of Commerce for Industry and Security Jeffrey Kessler. Steelmakers including Cleveland Cliffs and others had petitioned the administration to expand the tariffs to include additional steel and aluminum auto parts.
Business Times
4 hours ago
- Business Times
Lululemon founder Chip Wilson pledges stock for US$500 million in loans
[VANCOUVER] Lululemon Athletica founder Chip Wilson pledged shares in return for cash for the third time in just over a year, freeing the billionaire to spend on other matters and maintain his voting influence over the yogawear-maker he founded nearly three decades ago. Wilson now has access to more than US$500 million from different banks without having to sell stock. Last week, Royal Bank of Canada (RBC) agreed to lend Wilson as much as US$315 million, partly backed by Lululemon shares, according to an Aug 11 regulatory filing. That deal followed an arrangement with Citigroup, signed in January, in which the bank committed to advance the billionaire about 330,000 Lululemon shares' worth of money – roughly US$122 million at the time – and let him settle the debt either in shares or cash. And last year Goldman Sachs Group agreed to lend him up to US$200 million backed by Lululemon stock. Filings disclosing Wilson's arrangements do not reveal whether he has taken advantage of the loans, or how he plans to spend the cash. Wilson did not respond to a request for comment. Super-rich around the world often put up publicly traded equity or other assets as security for loans. They can be tailored to the person's needs, and the interest cost on the loan is likely to be much lower than the capital gains tax bill they would face if they sold shares instead. Wilson's deals will also allow him to benefit from any potential share price rebound. Lululemon's stock surged during the pandemic, but has tumbled more than 40 per cent so far this year. Lately, the athletic wear firm has faced slowing sales and fewer store visitors. The billionaire stepped back from day-to-day management of Lululemon more than a decade ago. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The 70-year-old suffers from a form of muscular dystrophy for which there's no cure. He has said that he'd spend US$100 million on research and has put himself through experimental therapy to slow the progression of the disease. The very rich, motivated not by money but by survival, can create more effective funding and research organisations than the ones that currently exist, Wilson told Bloomberg Businessweek in 2023. He has a US$7.9 billion fortune, according to the Bloomberg Billionaires Index. Each of the three arrangements are structured differently. The margin loan from Goldman is backed solely by Lululemon shares, while the loan from RBC is secured with both Lululemon stock and other unspecified collateral. The Citigroup deal is a bit more intricate. Wilson can use it to sell shares to the bank outright. But he can also choose to collect the loan balance and repay it 18 months later, using either cash or shares, and there are certain terms allowing him to capture potential share price gains over that period. In the regulatory filings detailing the arrangements with RBC and Citigroup, Wilson also disclosed that he'd terminated two old share-backed loans that together gave him access to more than US$100 million. BLOOMBERG
