Evergreen Marine Corp (長榮海運), Asia’s biggest container shipping line, posted a 35 percent decline in second-quarter profit because of a near-doubling of fuel costs and losses from affiliate EVA Airways Corp (長榮航空).
Net income declined to NT$829 million (US$26 million) in the three months ended June 30, compared with a profit of NT$1.28 billion a year earlier. The figure was derived by subtracting first-quarter profit from six-month results released yesterday.
Evergreen Marine was unable to pass higher fuel costs onto customers because of slower world trade and rising competition caused by the launch of new ships. Neptune Orient Lines Ltd, Asia’s fourth-biggest container line, pared expansion plans after posting a 19 percent decline in second-quarter profit.
Higher fuel prices also caused EVA Airways to post a first-half loss of NT$5.97 billion compared with a loss of NT$1.69 billon a year earlier. Evergreen owns a 19 percent stake in the airline.
Evergreen’s second-quarter sales fell 21 percent from a year earlier to NT$5.7 billion, monthly filings to the Taiwan Stock Exchange showed. Revenue from affiliates and subsidiaries are counted separately.
First-half profit fell to NT$1.2 billion from NT$1.63 billion a year earlier, Evergreen Marine said in a filing yesterday.
The shipping line’s shares fell 3 percent to NT$18.
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